Select Comfort Corp. (NASDAQ:SCSS)

IBD EPS, RS, SPROE, Acc ratings plus P/E and div yield
RETAIL 92 5 AD+ PE14

Earnings beat expectations and the stock dropped. Go figure.

Excellent product and good future. Now is the time to buy

Mattress sale up 18% in May I believe. SCSS should have good earnings coming up. Low Debt, it has more cash on hand than Tempur-Pedic mere 70 million or so and SCSS mattress won't cost 4000 dollars to buy.

2 words......ZERO DEBT!!!

Too expensive for the middle class, too gimmicky for the upper class. Where's the market for this?

Overreaction market

Good

I like this mattress company second to only tempur-pedic. Both companies should enjoy growing profits in the coming months.

Excerpt from an unedited CAPSCall article anticipated to be published on 27-FEB-2012.

"As a shareholder of both Select Comfort and Discover Financial, I estimated a fair value to their shares that was greater than my original purchase price but less than the strike price. In Select Comfort's case, I think those $28 shares ought to really fetch closer to $20, and in Discover's case, those $30 stubs ought to be in the neighborhood of $25 .

"I bought them significantly below those levels -- paying a weighted average of $13.69 for each Select Comfort share and $13.22 a stub for each Discover one, before commissions. Now that they've surpassed what I think they're truly worth, I need to be willing to part with those shares and redeploy the capital into the next opportunity. That's where the covered call option sales come in handy."

Disclosure: I own shares of both Discover Financial and Select Comfort and have written covered calls against those shares.

steady growth in all economic times

Priced for high growth, in a very economically-sensitive business. If 401k values fall, housing stays in a slump, unemployment persists, then that extra $1000 is going under the mattress, not into one.

Low Price with High Professional Opinion

scss

I need such a bed. I know my back and neckpain will get better.

This was a Hidden Gem 3 times Pick with a target of around $17. It dropped to below $1 in early 2009 and has risen steadily since then. I still believe in the valuation and their ability to maintain a segment of the premium bed market

Everywhere I look there is advertising for the Sleep Number bed. Either the company has decided to waste a lot of money or the advertising is bringing in the customers.

Technicals

The bed is better than any other bed

This stock is trading cheap in its industry. It has strong projected earnings per share growth this year. What else can you really ask for?