Revlon (REV): High debt, but positive developments

April 29, 2011
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I recently examined Revlon (REV), a makeup company which has had a spotty and debt-laden history but which has turned the situation around in the last four years, assisted by substantial overseas growth. Although the firm is still dealing with the debt that Ron Perelman saddled it with during its LBO, it offers a free cash flow yield of more than 10% when its tax loss carryforwards are taken into account, and Ron Perelman seems to stand ready to serve as an (expensive) lender of last resort.

For my full views on Revlon, please visit

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