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Topic: Growth Stocks

NEWELL RUBBERMAID INC. $32 – New York symbol NWL

NEWELL RUBBERMAID INC. $32 (New York symbol NWL; Aggressive Growth and Income Portfolios, Consumer sector; Shares outstanding: 276.7 million; Market cap: $8.9 billion; Price-to-sales ratio: 1.6; Dividend yield: 2.1%; TSINetwork Rating: Average; www.newellrubbermaid.com) is buying Ignite Holdings, a private company that makes reusable water bottles and thermal mugs under the Contigo and Avex brands.

Newell will pay $308 million when it completes the purchase later this year. That’s equal to 57.6% of the $534.9 million, or $1.83 a share, that Newell earned in 2013. The new operations will add $125 million to its annual sales of $5.7 billion.

The company feels its expertise will cut Ignite’s manufacturing costs. Newell can also use its extensive global distribution networks to increase Ignite’s sales.

Newell Rubbermaid is our #1 buy for 2014.

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