FORM 4 Check this box if no longer subject to Section 16. Form 4 or Form 5 obligations may continue. See Instruction 1(b).

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 STATEMENT OF CHANGES IN BENEFICIAL OWNERSHIP OF SECURITIES Filed pursuant to Section 16(a) of the Securities Exchange Act of 1934, Section 17(a) of the Public Utility Holding Company Act of 1935 or Section 30(h) of the Investment Company Act of 1940

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1. Name and Address of Reporting Person * Dowd W Richard   2. Issuer Name and Ticker or Trading Symbol New Sally Holdings, Inc. [SBH] 5. Relationship of Reporting Person(s) to Issuer (Check all applicable) _____ Director _____ 10% Owner __X__ Officer (give title below) _____ Other (specify below) SVP, Distribution and CIO (Last) (First) (Middle) C/O SALLY BEAUTY HOLDINGS, INC., 3001 COLORADO BOULEVARD 3. Date of Earliest Transaction (Month/Day/Year) 11/16/2006 (Street) DENTON, TX 76210 4. If Amendment, Date Original Filed(Month/Day/Year) 6. Individual or Joint/Group Filing(Check Applicable Line) _X_ Form filed by One Reporting Person ___ Form filed by More than One Reporting Person (City) (State) (Zip) Table I - Non-Derivative Securities Acquired, Disposed of, or Beneficially Owned

1.Title of Security (Instr. 3) 2. Transaction Date (Month/Day/Year) 2A. Deemed Execution Date, if any (Month/Day/Year) 3. Transaction Code (Instr. 8) 4. Securities Acquired (A) or Disposed of (D) (Instr. 3, 4 and 5) 5. Amount of Securities Beneficially Owned Following Reported Transaction(s) (Instr. 3 and 4) 6. Ownership Form: Direct (D) or Indirect (I) (Instr. 4) 7. Nature of Indirect Beneficial Ownership (Instr. 4) Code V Amount (A) or (D) Price Common Stock 11/16/2006   A   66,102 A (1) 66,102 D (2)   Common Stock 11/16/2006   A   2,546.7357 A (1) 2,556.7357 I By 401(k) Common Stock 11/16/2006   A   5,442.5415 A (1) 5,442.5412 I By Profit Sharing Plan

Reminder: Report on a separate line for each class of securities beneficially owned directly or indirectly.
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Table II - Derivative Securities Acquired, Disposed of, or Beneficially Owned
(e.g., puts, calls, warrants, options, convertible securities)

1. Title of Derivative Security (Instr. 3)

2. Conversion or Exercise Price of Derivative Security

3. Transaction Date (Month/Day/Year)

3A. Deemed Execution Date, if any (Month/Day/Year)

4. Transaction Code (Instr. 8)

5. Number of Derivative Securities Acquired (A) or Disposed of (D) (Instr. 3, 4, and 5)

6. Date Exercisable and Expiration Date (Month/Day/Year)

7. Title and Amount of Underlying Securities (Instr. 3 and 4)

8. Price of Derivative Security (Instr. 5)

9. Number of Derivative Securities Beneficially Owned Following Reported Transaction(s) (Instr. 4)

10. Ownership Form of Derivative Security: Direct (D) or Indirect (I) (Instr. 4)

11. Nature of Indirect Beneficial Ownership (Instr. 4)

Code

V

(A)

(D)

Date Exercisable

Expiration Date

Title

Amount or Number of Shares

Employee Stock Option (right to buy)

$ 34.2267

11/16/2006

A

14,250

(3)

09/30/2012

Common Stock

14,250

(4)

14,250

D

Employee Stock Option (right to buy)

$ 39.5433

11/16/2006

A

12,300

(3)

10/01/2013

Common Stock

12,300

(4)

12,300

D

Employee Stock Option (right to buy)

$ 43.83

11/16/2006

A

11,200

(3)

10/01/2014

Common Stock

11,200

(4)

11,200

D

Employee Stock Option (right to buy)

$ 44.4

11/16/2006

A

12,000

(3)

10/01/2015

Common Stock

12,000

(4)

12,000

D

Reporting Owners

Reporting Owner Name / Address	Relationships
	Director	10% Owner	Officer	Other
Dowd W Richard C/O SALLY BEAUTY HOLDINGS, INC. 3001 COLORADO BOULEVARD DENTON, TX 76210			SVP, Distribution and CIO

Signatures

Raal Roos, Attorney-in-fact for Mr. Dowd		11/20/2006
**Signature of Reporting Person		Date

Explanation of Responses:

*	If the form is filed by more than one reporting person, see Instruction 4(b)(v).
**	Intentional misstatements or omissions of facts constitute Federal Criminal Violations. See 18 U.S.C. 1001 and 15 U.S.C. 78ff(a).
(1)	Acquisition of shares of common stock, including shares of restricted stock, in a merger of one of the issuer's subsidiaries into the Alberto-Culver Company ("Old Alberto-Culver") to effect the formation of a holding company (the "Holding Company Merger"). In the Holding Company Merger, the shares of common stock, including shares of restricted stock, of Old Alberto-Culver were converted, on a one-for-one basis, into shares of common stock, including shares of restricted stock, of the issuer pursuant to an Investment Agreement dated as of June 19, 2006, as amended, among Old Alberto-Culver and certain of its subsidiares and CDRS Acquisition LLC.
(2)	Includes 59,718 shares held jointly with spouse.
(3)	This option, to the extent unexercisable, became exercisable in full on November 16, 2006.
(4)	In the Holding Company Merger this option replaced an option to purchase a number of shares of common stock of Old Alberto-Culver equal to the number of shares subject to this option at an exercise price equal to the exercise price of this option.
Remarks: The number of employee stock options held by the Reporting Person, and their exercise price, will be adjusted pursuant to the Employee Matters Agreement (the "EMA") dated June 19, 2006, as amended by the Issuer, Old Alberto-Culver, and certain of its subsidiaries.  The adjustment will be effected in a manner that preserves the Intrinsic Value (as defined in the EMA) of each option on the day of the Holding Company Merger.

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