John Leonard, CFA
Special situations, micro-cap, contrarian, CFA

CCA Industries Is A Classic Value With A Catalyst Special Situation

Company overview

CCA Industries (NYSEMKT:CAW) manufactures and distributes health and beauty aid products primarily in the U.S. and Canada (international sales only account for ~5%) through major drug stores, food chains, mass merchandisers and wholesale beauty aids distributors.

More than just buying blind: Tangible signs of a V-shaped recovery

In 2013, CAW posted its weakest performance in the history of the company due primarily to the unexpected passing of CEO Dunnan Edell. Understandably, this tragedy and the loss of a full-time CEO for eight months diverted attention away from revitalizing the struggling diet and nail care product brands, revamping in-store merchandising, expanding distribution and introducing new products. As a result, returns and allowances spiked to 16.2% of gross...

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