Avon’s changes: Beauty or beast?

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Avon (NYSE: AVP; Price: $19.21) is being investigated by Securities and Exchange Commission for alleged violations related to its communications with financial analysts and its international operations. After that revelation in October 2011, the cosmetics giant announced in December 2011 that it would separate the roles of chairman and CEO. 

The leadership changes will benefit shareholders eventually, says Alexey Bulankov of McCarthy Asset Management, but he has no specific timeline as to when that might occur. Bulankov advises investors to place the company on a watch list.