Tempur-Pedic International, Inc. (NYSE:TPX)

http://slopeofhope.com/
Shorting Tempur-pedic
BY TIM KNIGHT - APRIL 16, 2013
Today’s strength was quite predictable; I’m using the bounce as an opportunity to get into other positions at good prices. Here is one of them:

This is a pure gamble. I like the recent acquisition of Sealy, which should fill out their offerings.

Housing is coming back, so will suppliers

solid company, recent fall way over-done

Fundamentals are really good, high gross margin, PER is 10, great brand name.

Temper pedic has has shares drop from 5.2 to 2.9 M but manager John Shanpino is back the stock was up 50% in mid April but has fallen nearly two thirds

At its current valuation, the markets are viewing TPX as a clear straggler in its industry, but the fundamentals indicate that this is simply not the case. This is still the same company that grew its EPS (59.1%) and cash flows (8.5%) by impressive annual rates since the recession, while sporting solid margins, so it's not fair to completely forget these attributes. Such is life in our current market environment however, as investors remain ready to dump their holdings on a whim.

Product is too easy to replicate. Also the idea of the "upscale" mattress is, in my limited experience, not valid over the long haul.

Just crushed

This stock is just undervalued.

Have been smashed. Should rebound in a couple of years but for now....

Typical overreaction based on falling earnings on a previous momentum stock. Anything short of a catastrophe should lead to a bounce.
CAPScall based on this article: http://www.fool.com/investing/general/2012/06/22/is-tempur-pedic-the-perfect-stock.aspx

Massive insider buying, both by executives and stock re-purchases. Stock is down 75% from highs. Solid name brand and product.

A really good company, high margins (which might degrade, but not that much) much lower P/E that other similar stocks, and knocked down to a bargain price by lowered earnings guidance. It's overdone. And a big buying opportunity.

Wow, P/E ratio of 6.7 after the sell-off

Replacing or acquiring a mattress is driven by household formation, age, moving etc. If you are over 50 and havent thought about replacing your old mattress, you are in better shape than I am..... My fav statistic is that "Ten Thousand people a DAY will be turning 65 for the next 10 years in the US. If TPX doesn't do well in that environment in the next 5 years, they are very poorly run, and I don't see evidence of a poorly run operation...

Overreaction market

This is an excellent company trading at a huge discount to its intrinsic value. The current sell-off is just an overreaction by the market.

Room for comfy profits!