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mikenpdx (22.06)

Tile Shop Holdings going up...

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October 21, 2013 – Comments (1)

this is post is part of my resolution this year to force myself to post about my buys/sells in 2013. mainly for me but feel free to comment. 

i got to this point because i was overconfident in what i thought i could do.  even with a background in finance, I ended up foolishly taking unnecessary risks and fooling (lower case f) myself that I could outsmart the market,  I got caught up in making short term plays to try and pump up my account while I waited for perfect opportunities to build out my longer term holdings.  not Foolish, and i should have known better.  by forcing myself to post what actions I am taking, I will hopefully avoid last years pitfall.

for context, i don't expect to have any new money coming in for another year or more and this is a retirement account so there are no tax consequences for selling. 

 

...or at least the size of my Tile Shop holding is....  I recently tripled what was a very small position.  I bought at 24.75, having previously bought at about $29.  now an article at Seeking Alpha shows up from a shortee on a day when existing home sales were reported to be down and you haveTile Shop Holdings, the stock, tanking 7+%.  why couldn't they have come out with that report on Friday, dammit?!  :-)  i kid...

nevertheless, i like this company for the long term.  they are small currently -- only about a $1.2B market cap.  they are re-investing money into new stores and the new stores are performing well.  i believe there to be a long runway of growth here.  they have a founder CEO who owns a sizable chunk and a strong focus on customer service to the point that some 50% of the business is from return customers.  and all that against the backdrop of what I think is a longer term recovery in housing.

 

1 Comments – Post Your Own

#1) On October 22, 2013 at 9:22 PM, Mega (99.95) wrote:

"they are small currently -- only about a $1.2B market cap."

They are very very small - only $200M in revenues over the last year, and book value is only $70M. 

It would be a nice little business if you could buy it for $300M instead of $1.2B. 

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