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IBDvalueinvestin (98.52)

LZB fell 30% in the weeks ahead of its Earnings, but earnings only missed by 1 cent



November 17, 2009 – Comments (4) | RELATED TICKERS: LZB

and the past is history , going forward LZB will earn $20M in net income from Mexican savings alone.

LZB stated:

Going forward, as we complete the transition of our cutting-and-sewing operations from our domestic La-Z-Boy branded facilities to our new facility in Mexico, we expect to further improve the efficiencies of our upholstery operation. With over 840 people working at the facility in Mexico, the transition is going smoothly. As we initially stated, once fully operational, we expect our move to Mexico will save us $20 million on an annual basis. We will begin to realize some of these savings in the fourth quarter of fiscal 2010 with the remainder flowing through to our results over the first nine months of fiscal 2011."

4 Comments – Post Your Own

#1) On November 17, 2009 at 4:39 PM, ChrisGraley (28.58) wrote:

It was overvalued before the earnings miss.

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#2) On November 17, 2009 at 4:44 PM, IBDvalueinvestin (98.52) wrote:

So your saying if the analyst estimates had been at .09 eps and they posted .11 eps then at $7.10 they would have been undervalued but because analysts had .12 eps and they posted .11 eps they are overvalued.

Nice logic.

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#3) On November 17, 2009 at 8:41 PM, ChrisGraley (28.58) wrote:

It has nothing to do with analysts. They are overvalued and will continue to be overvalued. I red thumbed them at $4.85 and still feel comfortable with that.

The only info I get from analysts is free and worth what I paid for it.

We won't be back into a Lazyboy economy for at least another couple of years and if we do, it won't last long.


Disclaimer: In that last sentence, you can substitute any of the following:

Rental car company with ficticious financials, Pier One,  Doral, Radian, Any coffee company that sells K-cups, High end retailer, Jewelry store, online store that sells diamonds, travel company, airline, online brokerage, leveraged dry bulk shipper...


I could go on but you get the picture.

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#4) On November 17, 2009 at 8:49 PM, ChrisGraley (28.58) wrote:

A 30% drop in stock price isn't much when compared to a 769% gain in stock price since 04/09/09.

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