ValueGrowthInvesting
(VGI) NOW IS THE TIME TO BUY EXPORT (FURNITURE) COUNTERS
ValueGrowthInvestor
Publish date: Wed, 18 May 2016, 03:59 PM
ValueGrowthInvestor
0 28
Looking for that rare combination, where companies exhibit signs of above-average growth whilst trading at undervalued prices due to market mispricings. Hence, value growth investing.
Spotting a new trend before the market does lets you earn extraordinary profits. Avoid crowded trades, if you think you are still early to join the airline and oil&gas bandwagon, you are already too late and the party is about to end.
Here is why export stocks (furniture) are poised to bounce back strongly:
1) USD/MYR convincingly above 4.00 having broken its 60-day moving average. It will stay there as the Fed's plans to raise interest rates are not off the table.
2) Growth rate of US retail consumption for furniture and Malaysia exports of furniture of 5.6% and 5.5% respectively is higher than Malaysia's GDP growth rate of 4.2%.
3) The largest furniture retailer in the US, Ashley furniture which buys from a few local manufacturers is embarking on ambitious expansion with potential for another 2000 new stores.
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Discussions
3 people like this. Showing 27 of 27 comments
As i stated in my blogpost, avoid crowded trades where all the positives are already known to the market and priced into the current share price. FFHB is a good example of a crowded trade. Besides, PE ratio is also higher than its peers.
2016-05-18 16:34
Any suggestion which fur counter that is most undervalued and in the position to benefit from this?
2016-05-18 16:37
then later MYR strong again, sell furniture stock? Why don't u go directly to trade USD...long for USD, faster...
2016-05-18 18:05
LiiHen 90m net cash , no debt , last 3months end Dec 2015 net profit 18m.
FL net cash 75m , no debt , EPS 30c for 2015 PE 8x
2016-05-18 22:03
Be mindful of Liihen. But then again, hopefully your money will be donated for a good cause under someone else's name.
2016-05-19 08:53
Be mindful as your entry might be funding someone prominent's exit.
2016-05-19 08:56
Everytime Liihen name is mentioned, a big old shark is waiting…….who know got “durian runtuh” for him this year….
2016-05-19 09:14
No up no confidence so no buy, up already then only got confidence, then finally rushing buy. Never get wrong.
2016-05-19 13:07
why mentioned all furniture except Homeriz? Homeriz also furniture stock...
2016-05-19 22:41
Yes, why promote certain furniture stock only??? why never mentioned about SHH counter..SHH furniture counter also want to be known to us.…. as long, we be mindful of liihen counter because the old shark is waiting there……
2016-05-20 02:06
Agree with you. Homeritz is better among the cheapest furniture counter. The revenue has been going up for 8 straight quarters.
2016-05-20 19:04
Lii Hen has just released QR, 100% profit growth compared to previous year's Q.
The revenue & profit are even better than the previous quarter, when RM was RM4.40!!!
Check it out: http://www.bursamalaysia.com/market/listed-companies/company-announcements/5098413
2016-05-20 19:37
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I think Home Depot is also doing very well.
Home Depot shines as more Americans nest
http://money.cnn.com/2016/05/17/investing/home-depot-earnings/index.html?iid=SF_LN
2016-05-18 16:09