The Beauty of Chasing
Market Commentary
By Charles Payne, CEO & Principal Analyst

"To be beautiful is the birth right of every woman"
Elizabeth Arden- 1916

Today, RDEN is surging to new highs as company management has increased its quarterly and full year outlook.

1Q13 $0.38 to $0.43 the street is at $0.37
FY13 $2.70 up from $2.55 and the street was at $2.37 coming into the session

When stocks breakout like this, true breakouts on strong volume, there is a tendency to feel like the idea was missed. Many investors simply decide good news for one company is good news for the industry. Therefore, they look for a rival stock that has not yet moved. This is more often than not a serious mistake. Sometimes there is good news for all, but in good or bad settings, there is pacesetter- the company grabbing the most spoils. RDEN has giant market share in North America and is strong in Europe- the top two markets by far.

Plus, the stock is still cheap. Take a look at key valuation metrics for RDEN and major rival EL.

I think RDEN will continue to be successful. Its direct to consumer business grew by 100% last year and its line of fragrances stars will be all over the place this fall. They include Britney Spears, a judge on X Factor, Mariah Carey, soon to be a judge on American Idol and Taylor Swift who will continue to dominate headlines. (I'm not sure what Usher is up to but I wouldn't be surprised to see him try to jolt his career.) The fragrance business represents $900m for the company and by far its biggest moneymaker, with the classic White Diamond still rocking, adding to its tally as best seller of all time.

You may wait a day or two but if this space is interesting to you, I would chase RDEN before chasing any of its rivals.

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