×

Avon CEO Change Could Send Shares to $18, Say Fast Pros

Pro traders Guy Adami and Joe Terranova see upside potential in Avon stock after the company said it’s looking for a new CEO.

”Now I think we could see a short squeeze,” says trader Guy Adami. “I think we could see the stock trade $17.5 to $18.”

Joe Terranova agrees. “I think it could go to $18.”

Interesting analysis if you’re a trader. However, if you’re a long-term investor Karen Finerman says put the company on your radar, but don’t pull the trigger.

“They need somebody who’s really good (as the new CEO),” she says. “Otherwise, I think there’s more bad news to come. Performance at Avon has been terrible.”

Tim Seymour says much the same. "I'd be cautious."

Avon has struggled for some time with erratic financial results and regulatory investigations.

The company, which is known in the U.S. for "Avon ladies" who go door-to-door selling its cosmetics, announced in October that the Securities and Exchange Commission is investigating its contact with financial analysts in 2010 and 2011.

The SEC also is reviewing Avon's own probe that began in 2008 into bribery by its employees in China.

Looking at the latest results, Avon reported in October that its net income fell and missed market expectations. It also said it is reviewing all aspects of its business and withdrew its revenue forecast for the year.

----------------------------------------------------------------------

> NEW SLIDESHOW: Slo-o-o-w Money, 10 Top Stocks for the Long-Term Investor

----------------------------------------------------------------------






______________________________________________________
Got something to to say? Send us an e-mail at fastmoney-web@cnbc.com and your comment might be posted on the Rapid Recap. If you'd prefer to make a comment, but not have it published on our Web site, send those e-mails to fastmoney@cnbc.com.


Trader disclosure: On December 13, 2011, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s "Fast Money" were owned by the "Fast Money" traders; Karen is long PLCM; Karen is long GOOG; Karen is short SPY; Tim Seymourhas positions in AAPL, BAC, INTC; Joe Terranova is Long VRTS; Long LQD; Long MUB; Long IBM; Long EMC; Long SBUX; Long SU; Long CAT; Long SWN; Long TRLG; Guy Adami is Long C; Long GS; Long INTC; Long MSFT; Long AGU; Long BTU; Long NUE; Jon Najarian is Long CBOE; Long CME; Long GIGX; Long AAPL call spreads; Long CSCO call spreads; Long TRGT call spreads; Long PAAS call spreads; Long MBIA call spreads; Long NTRI call spreads

Karen Finerman
Fund is long AAPL
Fund is long JPM
Fund is long IBM
Fund is long MSFT
Fund is long PLCM
Fund is short SPY
Fund is short IWM
Fund is short RTH
Fund is short MDY
Fund is short IBM calls|
Fund is short AAPL calls
Fund is short MSFT calls

For Dennis Gartman
Long Equities in EUR terms
Long crude oil futures
Long Canadian dollar
Long Asian short term govt. bond
Short S&P 500
Short FTSE 100
Short Euro Stoxx 50 futures
Short Euro
Short Pound Sterling
Short Japanese Yen

For Brian Marshall
* No disclosures

For Paul Sankey
Important conflict disclosures can also be found at
https://gm.db.com/equities under the "Disclosures Lookup" and "Legal" tabs. Investors are strongly encouraged to review this information before investing.

Deutsche Bank equity research analysts sometimes have shorter-term trade ideas (known as SOLAR ideas) that are consistent or inconsistent with Deutsche Bank's existing longer term ratings. These trade ideas can be found at the SOLAR link at http://gm.db.com.

For Ed Aaron
* No disclosures

For Diane Swonk
* No disclosures

CNBC.com with wires.