+ Watch HVT
on My Watchlist
The Company is a specialty retailer of residential furniture and accessories.
Long. Home furnishing stores. Should do well now that the housing market is turning up. Great amount of cash on balance sheet. 29x ttm, 18x fye earnings. Revenue growth of 13% and 200+% earnings growth.
i have been in home furishings 18 yrs. and from expierance i can see haverty's is in a no mans land....there not high end and not low end.. they are medium-high.....they dont have a niche in this economy...sears homelife bankrupt!...modernage bankrupt!...wicks bankrupt!,,,roberds bankrupt...levitz bankrupt...the list goes on and on...haverty's does have clean empty parking lot's
If credit is easy and you just bought a huge new house, you might as well buy some furniture to go with it. But if credit is tight and you are facing foreclosure, buying new furniture is probably the farthest thing from your mind. It's just not a good stock to own during a recession.
Stock that has beat the S&P 500 most of 2008 and insiders own more than 10 percent of the stock.
Consumer spendings down. After chk999.
Over time, their costs will come down with a (likely) stronger dollar and cheaper transport costs; however, HVT seems massively overvalued at this price (~$10). October 7 they reported same store sales slipped. Today, the Commerce Department reported building permit applications slipped to a 25 year low. And the news of yesterday is that credit card issuers will be shrinking consumer lines of credit. And HVT has a huge exposure in the Florida housing bubble. So if we're not building houses to put furniture in, and the banks are reducing credit (which most furniture is purchased on), is there anywhere to go but down for HVT revenue. Piling on the hate, if people's futures are less certain (as they seem to be now), even if you have the cash or credit, you're probably not going to go out and buy a new living room or bedroom set if it isn't necessary.
If you can't afford to keep your house, how are you gonna afford to furnish it?
Nothing has been the same for these guys since the infamous "Musical Chair Massacre" of '98.
I pick this stock to stay under until the housing market rebounds. Who buys the most furniture? New home owners do. They have to get that new bedroom suit or sectional or recliner. Give the housing market time to rebound then watch this go up. I wouldn't buy for the next couple months and wait till it bottoms out then get what you can afford. I don't think this will be a big money gainer for people but it will boost a portfolios worth in time.
From my short ideas/valuation screen
Have you been in one of these stores? (a) eventually the current generation of old people will no longer be buying furniture and Haverty's massive inventory of old-people furniture will be a liability.(b) in Maryland, furniture stores pop up like some kind of weird gypsy wagon train installations and get crazy Tobagoan immigrants to sell sell crap Haverty knock-offs all over the place. The furniture market is absurd. You want a piece of that? Who is buying this stock?(c) P/E of 61 on a furniture company?
“Cold comfort” is what applies to Haverty Furniture, which sells its own brand and name-brand home furnishings and accessories in the middle to upper-middle price range. The Company operates through 120 stores serving 78 cities in 17 states in the southern and midwest regions. Haverty saw a good third quarter with increase in sales and profit margins, however it started the fourth quarter with leaner backlogs, negatively impacting October sales. This is the result of softness in the retail industry, especially in furniture retail, as new home sales and existing home sales have been showing a declining trend over the past four quarters and the trend is expected to continue for a while. Higher borrowing costs also led consumers pull back from big-ticket purchases.The Company is in for the soft trend and is learning to sail through by gaining market share in coming months as the tough times will force few furniture retailers out of business. Additionally, the company plans to open five new stores by next year and an e-commerce presence to fully integrate all its stores. Effects of the softness are vigilant on its October sales while other players have already reported lower quarterly results. Considering the macro economic factors and intense competition Havertys will have tough time sailing through.
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