PROFILED ON APRIL 26, 2007
Spectrum Brands, Inc. (NYSE: SPC).....................................................................................>>Back

Estimated Holding Period: 1-3 months

Profile:

Spectrum Brands is a global consumer products company and a leading supplier of batteries, lawn and garden care products, specialty pet supplies, shaving and grooming products, household insect control products, personal care products and portable lighting. Spectrum Brands' products are sold by the world's top 25 retailers and are available in more than one million stores in more than 120 countries around the world. Headquartered in Atlanta, Georgia, Spectrum Brands generated FY2006 revenue of $2.5 billion.

SPC dropped from $12.50 to $4.62 in just two months starting this past February largely due to the fact that SPC, like other manufacturers, has been hit with higher costs for raw materials like copper, nickel, and zinc. SPC reported a fiscal first quarter loss and falling revenue.

Although Bones believes that SPC is struggling due to intense competition in its battery business and increased commodity costs, he believes that SPC is primed for a move up at these levels based solely on technicals. Bones thinks we could see SPC at $8.50 or higher in the coming months.

Although he himself would not hold through the upcoming earnings conference on May 10th, any positive surprises could send SPC up substantially higher than $8.50. On the other hand, any more bad news from the company could send SPC substantially lower after the earnings conference.

Full Disclosure: Bones has no position at this time