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Retailer, manufacturer and marketer of branded home furnishings.
Insider and institutional buys, strong surge likely to continue.
I thought very seriously about putting real money in this a couple of years ago at around $8 a share. I still think it is undervalued, and think the current upward trend will continue.
Gaining support among the All-Stars here, which eases my nervousness over some unimpressive other things which tempt me to end the pick.
Trades below net tangible assets, growing revenue double digits, an EV/revenue below 0.5, and a low P/E. They are also buying back shares. Strong net cash position.
Long term, it pays dividend, plus a couple of special dividends.
Positive:- Below tangible book, almost no debt- Recent momentum in stock price- No big danger of going bancrupt even in strong recession due to clean balance sheet- Good management who quickly purges underperforming stores and looks for new growth elsewhere- They pay a dividend and (correctly at this price) buy back stockNegative:- Could go a lot lower in a recession due to high beta and cyclical business- Housing will remain a problem for a long time to come and not contribute to additional growth for BassettCategory: R13BRm
Good Earnings, Quality Product, Growing Market Cap, Good P/E Ratios, Solid investment
The company has had a huge cash inflow from the earlier sale. There is another potential $9 million from the trade suit with China.They have really focused on closing bad stores and cleaning up the books.Housing seems to be on a slow uptick. If money becomes more available and if mortgage rates begin to show a bit of a rise, there could be an influx of buyer trying to pick up homes at the bottom.There is a older, small neighborhood near mine. A flipper came in, picked up a bank sale at $90,000, put in about $10,000 in landscaping and paint. listed and $170,000 and sold the first week shown at $166,000. (1400 sf with pool)Market may be creaping back on the lower end.
Looking for bargains. This looks like one with good balance sheet and low price.
worst furtniture store ever
home furnishings and fixture sectormortgage problems kills furnishings
price less than book value, makes it a buyout target during a down cycle in consumer goods
Revenues dropping, earnings dropping. People already bought the furniture they need for their new houses, and now they are spending their money servicing that debt. As Mr. Burns would say,"Release the hounds".
Bassett Furniture is engaged in manufacturing, marketing, and retailing of branded home furnishings in the United States, Canada, and internationally. The Company operates through wholesale and retail segments. The wholesale segment contributes about 80% of the revenues. The retail segment consists of 135 stores, 26 of which are owned stores and the rest are partnership licensee stores. In Q3’06, Net Revenues declined by 6.3%; wholesale segment declined by 8.3 %, and retail segment showed a flat trend on a year-over-year basis. Gross margins declined by 5.9% year-over-year as a result of soft retail conditions and clearance sales. New housing unit sales have also shown declining trend which is expected to continue. Due to the downturn in housing sales and increasing competition in the industry it is expected to negatively impact the company.To counter the situation of declining revenues and margins, the company is adopting a strategy of growing company-owned stores and expects to increase number of stores to 250 to 300 by 2007. The Company also expects to shift its domestic versus imported product to contain a 50/50 mix over the next two years, which is expected to positively impact company’s operating margins then. Despite the initiatives taken by the company, we believe that the company would underperform given the softness in the housing sales and the increasing competition.
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