Newell Rubbermaid Inc. $9.21 – New York symbol NWL

NEWELL RUBBERMAID INC. $9.21 (New York symbol NWL; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 277.2 million; Market cap: $2.6 billion; Price-to-sales ratio: 0.3; WSSF Rating: Average) makes a wide variety of household products, such as plastic storage bins, tools and pens. International markets account for 30% of its revenue. The company’s total term debt was $2.9 billion as of December 31, 2008, which is a high 110% of its market cap. Of that total, $752.7 million is due within one year. Newell generated $546.6 million in cash flow in 2008, so it should have little trouble meeting its obligations. The company also held cash of $275.4 million, or $1.00 a share. Newell aims to conserve cash by accelerating its current restructuring plan, which includes temporarily shutting down some of its plants to reduce inventory levels. Excluding unusual items, Newell will probably earn $1.19 a share in 2009. The stock trades at 7.7 times that estimate. To conserve cash, the company recently cut its dividend by 50%, from $0.84 a share to $0.42. It now yields 4.6%. Newell Rubbermaid is a buy.

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