Lifetime Brands, Inc. (NASDAQ:LCUT)

Great financials, a solid business whose stock was oversold.

Low price-to-sales value.

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Lifetime Brands is a leading designer, developer and marketer of household kitchenware, tabletop, cutlery and cutting boards, bakeware and pantryware and spices. These products are marketed under the brand name like Pfaltzgraff, KitchenAid, Farberware, Cuisinart, Sabatier, Calvin Klein and Hoffritz. The company operates in two business segments and derives 80% of its revenue from wholesale segment, while the rest coming from direct-to-customer.

According to industry sources, the Housewares segment in the U.S. in which Lifetime Brands competes is a $20 billion market. The market is driven by consumer brand recognition, quality, aesthetic appeal, packaging, and distribution capacity. This goes well with the company as it continuously innovates and redesigns product in order to expand its market share.

The company saw a top-line growth of 50.3% for Q306 driven by double-digit sales growth in kitchenware, cutlery, bakeware and pantryware. Additionally, acquisition of Salton and Syratech business has augmented Lifetime Brands revenue growth. Conversely, its gross margin has been negatively impacted by acquisitions. Nevertheless the company expects improved gross margin on account of better product mix.

The company lowered its fiscal 2006 revenue to be in the range of $450 to $480 million as a result of lower than anticipated orders. However, it anticipates revenue growth for the fiscal 2007 to be in excess of 15%. Moreover, the management has set its goal to reach $1 billion sales with a CAGR of 27% by 2009. Further, the termination of low-margin contract business that was included in Pfaltzgraff and realigned distribution channel should help the company to achieve its guidance of 100 bps improvement in operating margin. With these positive aspects it seems that Lifetime Brands should outperform the market.

Good brands but recession looms, so outlook has weakened and stock has crashed. Decent entry point for a long term position. Haven't yet checked the exercise price on the convertible bonds they issued but it should be significantly higher than the present stock price of 16. But Malstryx was right in Sep when he said something was

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This stock has been out of market favor for a few months. Believe it will gain it's stature with a few months.

Q4 holiday shopping looks robust.

we'll always need this company for the kitchen

Well-run business. Insider ownership. Value pick.

Cuisinart and KitchenAid. These two names are known by almost everyone who cooks for themselves, and are coveted by everyone who watches The Food Network. They get free advertising on Iron Chef and Emeril. If you spend any significant time in the kitchen, you either have or want this name on your countertop.

Why not put them in your portfolio? Especially as undervalued as they currently are?

Consumer spending will not abate even if the economy softens. It will shift from large ticket items to smaller luxury ticket items, hence, LCUT

Women love this stuff

small boring housewares company with big upside once it fully integrates numerous recent acquisitions

Good company that happens to be in a bad sector based on current sentiment.

Recent drop due to potential dilution from convertible stock issue. Brands and business are still strong.

good acquisitions, but market condition may not cooperate since profitability depends on consumer disposible income