Post by
undervalue on Dec 08, 2022 10:31am
Starting a position
Well over $7 a share in cash and investments.
1.6 million ft of owned real estate.
I googled the locations. Most are very high traffic sites with major neighbors. Value is likely much higher.
The co. Has very good historical margins, dampened by the spike in rates. The online threat for furniture has sucked growth out of the space, but, it is not a killer as originally assumed.
Now trading below book.
The aif outlined an issue regarding fed tariff rates on imported upholstered furniture. This may account for a bit of the margin loss in the last couple q's
I see this as a natural fit for Leon's.
They could take over operations, spin the real estate into a small reit.
The paid in capital is just a couple million versus retained earnings of close to 400 million.
A ratio Buffet would approve of.
Value? Not sure. But the cash and real estate really provides down side protection. Upside? A takeout.
Comment by
tileb81 on Dec 08, 2022 12:47pm
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