tag:blogger.com,1999:blog-2149523431587168680.post8210379501738915699..comments2024-01-16T00:12:23.220-05:00Comments on Oddball Stocks: Hooker Furniture and the minutia of inventoryNate Tobikhttp://www.blogger.com/profile/05660387777171986124noreply@blogger.comBlogger4125tag:blogger.com,1999:blog-2149523431587168680.post-45376305325305452312012-08-01T21:57:39.594-04:002012-08-01T21:57:39.594-04:00Most likely, before the bubble popped I believe th...Most likely, before the bubble popped I believe they had higher margins and probably turned inventory quicker. They're working to change their furniture lineup which to me seems like they're searching for the formula for success again. The housing boom has moved on, and unfortunately Hooker was left in the dust. They need to reorient for the future which is people buying less and less expensive furniture.<br /><br />I think it's expensive now, at 50% of BV I'd be interested although there is the dividend coverage issue.Nate Tobikhttps://www.blogger.com/profile/05660387777171986124noreply@blogger.comtag:blogger.com,1999:blog-2149523431587168680.post-67191352829330790612012-08-01T21:50:41.613-04:002012-08-01T21:50:41.613-04:00There was a breakdown of the company's ROIC ab...There was a breakdown of the company's ROIC about a year before the financial crisis. Related to the housing bubble popping? The current price seems to assume that the ROE will rise back up to around 8% or so. Normally a 4% ROE would warrant a value of 50% of book value.V Investornoreply@blogger.comtag:blogger.com,1999:blog-2149523431587168680.post-85632698053923683562012-07-03T23:10:26.452-04:002012-07-03T23:10:26.452-04:00Sorry for the slow response. Thanks for the comme...Sorry for the slow response. Thanks for the comment, I checked out your blog. Somehow I missed where you said it was in Finnish and spent 15m trying to guess what language it was. I eventually googled specific words and Finnish came up, if I just read better…<br /><br />I was able to translate it and understand your main point, STLY seems interesting, I'm going to look into them further and hopefully have a chance to do a post. Thanks for the comment and the information, this looks like a nice little bargain!<br /><br />NateNate Tobikhttps://www.blogger.com/profile/05660387777171986124noreply@blogger.comtag:blogger.com,1999:blog-2149523431587168680.post-54961465336616051242012-06-26T03:18:05.121-04:002012-06-26T03:18:05.121-04:00Check out Stanley Furniture. It has no interest be...Check out Stanley Furniture. It has no interest bearing debt and has a cash position of ~$52M with a market cap of $57M. The cash position isn't currently reflected on the balance sheet, because ~$40M of CDSOA-payments were recieved after FY12Q1 (this also means that screeners aren't able to pickup the numbers yet!). The management stated in the previous conference call that this money belongs to the shareholders but it's still unclear how it will be distributed. Insiders hold a large chunk of the company, so I'm personally hoping for a special dividend. It should also be noted, that there is still ongoing litigation about CDSOA-payments so the cash isn't probably distributed until it's over (management estimation is at the end of 2012, read more from my blog).<br /><br />The management has been focused on restructuring the business during the housing crisis and very little has been done to market the company. This has of course depressed sales in the past but the restructuring is now largely finished and the company can start to ramp-up advertisement and marketing efforts. Management is currently estimating that it requires $30M in sales per quarter to break-even. This level is very close so cash-burn is no longer a huge deal (especially with the cash position!).<br /><br />I've emailed the Stanley's CFO in the past and he has been very quick to respond to my questions. I've posted the emails (with his permission) to my blog. The blog is in Finnish but the emails are in english, so one should find the email parts pretty easilly! ;) http://mietteitasijoittamisesta.wordpress.com/?s=STLY<br /><br />In the current state, investing in STLY is practically investing in cash and as an added bonus, you get the business for almost free. Independent director T. Scott McIlhenny Jr. recently bought almost $50k worth of stock @ $4.5 stock price.<br /><br />- vdellAnonymousnoreply@blogger.com