Natuzzi, S.p.A (ADR) (NTZ)

I made this same call about six weeks ago when Natuzzi popped without much reason. It keeps setting higher highs and I should leave it alone, but I'm drawn to unexplained pops in dubious equities like a moth to the flame. I will no doubt get burned.
Natuzzi specialized in leather and fabric upholstered funiture and is based in Italy and deals primarily in Europe and the Americas. With 304 stores, the volume is large, but the overhead is high in a recession. The pop does appear to be the "appoval" of a mangement change where investors feel the value of the company will finanally be unlocked. My experience with management changes is that results take a long time to be achieved, sometimes they are too late, or sometimes factions linger that hold changes back. The strain on the company's growth the last five years is clearly cheaper imports. The value of the EURO and the cost of production of the leather furniture, (shipping to/from Italy for subcompents) are also drains on potential. Debt is at a minimum, but cash on hand has been declining rapidly. Natuzzi by some standards is undervalued. In a recession they could be a buyout target. IN general, the pop appears to be overdone and I will see if my red thumb is throbbing in short order.

Kirklands up. Ashley Furniture sales up. Why not Natuzzi too?