Seeking Alpha

Spectrum Brands Holdings (SPB) has been on a massive run, going from a low of $23.62 in late September 2011 up to $58.70 now. This run was most probably secured due to several aspects:

  • SPB's staple of well-known brands;
  • Its supposed cash-flow generation and being a dividend payer;
  • Its reported growth;
  • All of this fed by yield and equity hunger brought about by the Federal Reserve's monetary orgy.

However, this run hasn't really been met by much improved fundamentals from SPB. And as I'll show, this means that for several reasons, SPB is either a straight short or, at the very least, the short leg on a pair trade.

Business

As per Spectrum Brands:

Spectrum Brands Holdings

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