Newell (NWL) has changed little since dipping 12% lower in the pre-market after reporting their Q3 results. While those results easily beat expectations, and cash flow has improved significantly, revenues were much weaker than expected and revenue guidance for Q4 was well below expectations.

While I admire new management’s efforts to get the company right, the company’s topline problems go beyond retailers reducing inventory. NWL simply has too much financial leverage, in a weakening economy, to wait for management’s new efforts to kick in.

Sell NWL.