Yesterday, I was venturing through various online stock communities and a few people were touting Revlon. They were saying that Revlon (Symbol: REV) could double. I decided to look into the stock.

As of today, Revlon is trading at $1.36, which is attractive for investors with very limited capital. However, this stock is going nowhere fast. Revlon’s 52-week high is $1.41 and that’s about where you’ll see it a year from now, because the company has no growth.

The personal & household products industry isn’t exactly tearing it up right now—1.46% EPS growth. And Revlon is actually in reverse.

On May 8th, 2007, Revlon reported losses of $0.07 per share, which was in-line with expectations. If the second and third quarters of 2006 are any indicator of where the stock is heading, look out. We could see this stock drop another 10-20%. Revlon could dip below the $1 line as it did in July 2006—Closed at $0.99 on July 21, 2006.

Where’s the good news for Revlon?

As I’m analyzing Revlon all I see are negatives. Comparing Q1 2007 to Q4 2006, operating expenses are up and total revenue is down.

If we look at year-by-year data, total revenue in 2006 remained flat when compared to 2005, yet total operating expenses rose by 9% in 2006.

Bottom Line

Revlon is still hanging on to its name and buyers of this stock are perhaps trying to rekindle memories of days gone past.

The company is losing money, getting out-paced in its industry and showing no real signs of improving.

Will Revlon venture upward to $2.80 or beyond anytime soon? Unlikely. I think it’s probable that Revlon stays where it’s at, with a possible 10-20% decrease over the summer.