Like baseball, you can win in the
by playing small ball or three-run homer ball.
) leans to the small-ball side, meaning the company is steady and
competent but seldom delivers huge earnings gains.
In the past nine years, the company posted EPS growth of 25%
or more only twice -- 2004 and 2007. The average gain in the
remaining seven years was 16%.
Revenue growth was big in only one of those years -- 36% in
2006. The other eight years averaged revenue growth of 6%.
Consistency also counts. On that score, Tupperware is
The five-year Earnings Stability Factor is 4. The scale runs
from 0 (calm) to 99 (erratic).
Income investors can find pluses in Tupperware's dividend
history. The payout has more than doubled over the past six
quarters, rising from 30 cents to 62 cents a share.
The current annualized yield is 3% vs. 2.4% for the S&P
Should an investor buy Tupperware and hold for that 3%
dividend? Not necessarily.
A more active way to play Tupperware is to book profits from a
breakout at 20% or so, then sit out the next consolidation on the
sidelines. A stock will often base after a 20% gain.
How would that have worked?
Tupperware sketched several possible entries, beginning in
October. However, some occurred with the market in a correction
or the volume inadequate.
The best recent entry was Jan. 24, when the stock drew 49%
faster trade in a buy zone from a flat base. From the Jan. 24
closing price of 68.87, the stock gained 20% in less than three
Those who took the profit at 20% could re-enter if a new base
forms and delivers a breakout.