Elizabeth Arden (NASDAQ:RDEN), the New York based cosmetics company, is in the news, with the stock dropping ~17% yesterday on the news Korean company LG Household is no longer interested in acquiring the company. Despite move down to ~$22.50, I think the stock has considerable more downside; I could envision the stock trading as low as $11 in the next year or so (~45% downside) for the reasons outlined below.
RDEN has had a pretty interesting recent stock market history: in the last five years, the stock has rocketed from ~$7 to the mid-$40s, before beginning its descent back to earth, and currently trades at $22.5. As you might expect, during the ascent, you saw decent revenue
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