Hello, Fool! | Login | Signup | My Fool
Oct 15, 2008 6:27 PM ET | Feedback | Site Changes | Help
The Company's principal business is to develop, manufacture, market and support premium quality, adjustable-firmness beds and other sleep-related accessory products.
View All Commentary (SCSS)
Recs
3Rhino (57.55) Submitted: 12/11/06 11:43 AM : Start Price: $18.11 SCSS Score: 58.55
Lots of positive hype in the newsletters and the boards and a bunch of bulls in CAPS, doesn't make a stock go. This one has faltered in a big way twice in the last few months. First time I bought the "buying opportunity" line. Caught that knife and now I am bleeding worse. Total loss 20%. Is it another buying opportunity? Not for me or anyone who listens to me. Why? I believe the stock is dead money for the next 6-9 months. Based on last years quarterly numbers, there is not much growth or profitability in the first two quarters of the year. Everyone I know who had a sleep number got rid of it. Common complaint "too hot". By the way, the foam mattresses from Temper-pedic have the same complaint. All the folks who frittered away their youth making money sleep on old fashioned springs!!! You have to break that paradigm, before this company or their "foamy" competitor can really take off. It may still happen, but not soon. I'm taking my lumps and buying something that has long term probabilities and some hope in the short term.
Report this Post Replies: 4 | Reply
Oops! There appears to be a problem with your comment. Check to see if there's something you left out.
rgrossfool (< 20) Submitted: 4/26/07 11:49 AM
Recs: 0 | Rec This
This stock very well could be dead money for the next 6-9 months due to the slowdown in housing. However, brush short-term concerns aside and focus on the 5 year possibilities this company looks like it could be a big winner. The recently implemented $290M buyback is going to make it very difficult to be a bear on this company.
Report this Post Reply
jester112358 (< 20) Submitted: 5/20/07 3:59 AM
I visited one of their stores today. Tested the product and will likely buy one. The sales rep was excellentm superbly trained and she commented about the excellent management. In my opinion this is key to stock ownership as opposed to trend following or trading. (I do both in my personal portfolio) She took the job because of back problems alleviated by their product. Back problems are the #1 complaint observed by doctors. The so-called hype is based upon sound financial analysis of the balance sheet, good cash flow, and lack of debt by asute fools. The downturn in the housing industry only affects the less affluent who aren't in the market for this product anyway. Their marketing needs improvement. The last time I tried a product I liked this much was Harley Davidson, HD in 1997 when I bought my bike and their stock. I'm going to do the same here. Check HDs 10 year performance (Hint: I haven't sold any and could buy another bike with the profits alone)
wpepoon (< 20) Submitted: 6/01/07 3:14 PM
Too hot? I live in Sacramento (19 days of 100-degree weather per year is the norm) and have yet to encounter that problem. The foam is a very minor component of the Sleep Number bed - and nothing more than you would find in a traditional mattress. For that matter, my wife and I use a heated mattress pad in the winter and yet it rarely falls below 40 degrees here. Anyone complaining about the heat needs to stop cooking in bed...I'm not sure the average person even understands that SN beds have no springs, which explains the biggest problem with marketing. The higher cost of the beds doesn't concern me so much. My dad had the same mattress for 30 years before he bought a SN bed. And this is before I bought mine. Yet this same person won't spend more than $5 for a bottle of wine. If Select Comfort would just ask my dad how to sell this bed I'd rich in a couple of years.
3Rhino (57.55) Submitted: 6/28/07 1:41 PM
I still stand by everything I said about SCSS in December 2006. Since then it is down another 10% after my 20% loss. The value of compounding works both ways. These guys are shuffling management, blaming everybody for their problems and still can't deliver. Glad you like your bed. Sorry... the stock still has bedbugs.
Terms & Conditions
RSS Headlines
Fool UK