(FORTUNE Magazine) – The last time FORTUNE visited Gillette, the company was having a very bad beard day. In the Nov. 8, 1999, issue, Jeremy Kahn took the big G to task for its clunky sales and management structure, its insularity, and its general lameness. What's happened since Kahn's story? Well, from a stock perspective, nothing--or worse. Back then G was trading in the mid-30s; now it's at $30. Has Gillette solved any of its big problemos? Thus far the answer would be a big negatory.

Why then waste precious Street Life resources delving into Gillette? Well, because I think major changes could be afoot (aface?)--changes that could return this company to the preeminent growth stock it once was. Gillette may not have solved any of its problems, but it has addressed a big one: Last October the board (and remember, Mr. Buffett has a seat at that table) ousted Michael Hawley, and in January it brought in a new CEO, Jim Kilts, the former head of Nabisco. The take on the situation from those in the know: Gillette has some serious problems, but Kilts looks like the kind of guy who just might be able to fix them.

So how's he going to do it? We don't actually know too much about the new CEO's game plan. Kilts has done no media interviews (besides his introductory press conference) and hasn't met with analysts.

We do, however, have some clues as to Kilts' thinking. The first comes from his letter to shareholders in this year's annual report, dated March 2, 2001, only weeks after he took over. The letter is a frank and straightforward assessment of Gillette right now. Kilts' salient points include the fact that the company's results "have come short of original consensus estimates for the past 14 quarters." (Wow! A baker's dozen plus one.) And: "While Wall Street expects volatility in the high-tech sector, they do not treat it kindly in consumer products. In fact, they penalize it severely." Yeah, baby!

Another, less public set of clues comes from a letter to employees dated Feb. 19 that the CEO posted on an internal Website. In a Q&A format, Kilts suggests that his strengths and Gillette's are closely aligned, noting he has spent his career building brands (his emphasis, not mine) at General Foods, Oscar Mayer, Kraft, and Nabisco. Among Kilts' greatest hits: Oscar Mayer's Lunchables, Country Time lemonade, and Crystal Light. Successful and innovative products all (if not a mite yucky). Kilts writes: "With me what you see is what you get. And as I said, what you get is a genuine belief in building total brand value--that's the important message." Okay, Mr. K, we get it, you are going to focus on BRANDS!

G-watchers like Heather Hay Murren of Merrill Lynch think this approach could pay off. After all, she says, Gillette is nothing if not a great collection of brands. "Kilts' real area of expertise is merchandising at the store level," says Murren. "Gillette's products should really benefit from his attention and expertise."

But as the new CEO freely acknowledges, none of this will be easy. Take batteries. (Please!) The company just decided to spend $100 million on boosting its ailing Duracell brand. The division needs all the help it can get. Remember, Gillette bought Duracell from KKR for a big chunk of stock back in 1996. There was all kinds of talk about adding value to a commodity product and charging a premium price a la razors, but it hasn't worked out that way. Batteries have proven to be a nonstarter--growth is decent for a mature consumer product but margins are shrinking--and the company is probably stuck with this biz. (Who would buy it?) KKR, which now owns 51.4 million shares of G, is said to want out of its position. Not a real happy marriage there.

Then there's shaving cream, deodorant (Right Guard), Braun, Oral-B, and naturally King Gillette's razors: the Mach III, the Sensor (Kilts' personal fave), and the Venus. Kilts will need to shore up, build, or dispose of all these product lines. Or sell the whole company! There is always that option. Kilts suggests that isn't his goal: "I intend to build Gillette...and since I'm still in my early 50s...I intend to do so for many years." That may be true now. Still, if the right offer comes along...

As he's juggling all this, Kilts has hopped in the same boat as shareholders. He was given the usual comp package with millions of options (they are underwater, by the way), plus a recent SEC filing shows that Kilts recently purchased 29,274 shares of G--about $1 million worth--at $34 each. Now those shares are worth $878K. So it looks as if G has got a brand builder with a little vested interest. Kilts also seems to have the backing of someone else with a vested interest: Warren Buffett. Buffett, of course, is famous for his long-term perspective. That's good, because turning this baby around might take a while.