Opinions
The Panic-Proof Portfolio (Stockchase Research)
Bassett Furniture Industries, Incorporated
BSET-Q
TOP PICK
Feb 23, 2023
N/A
Stock price when the opinion was issued
household goods
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TOP PICK
Stockchase Research Editor: Michael O'Reilly This TOP PICK just beat analyst expectations by 80% and trades just 1.1x book value. This 120 year old manufacturer of home furnishings operates thru 97 stores in the US. Revenue has grown to almost double pre-pandemic levels. Retail margins expanded despite rising cost inflation. Order backlogs remain robust. We like that management has grown cash reserves while buying back stock and retiring debt. It pays a nice dividend, backed by a payout ratio under 25% of cash flow. We recommend a stop loss at $14.50, looking to achieve $32.50 -- upside over 65%. Yield 2.97% (Analysts’ price target is $32.50)
household goods
TOP PICK
Stockchase Research Editor: Michael O'Reilly We reiterate this 120 year old manufacturer of home furnishings, who operates thru 97 stores in the US, as a TOP PICK. Recently reported revenues were up over 12% and EPS by 43%. It recently rejected an offer of $21 for the company as management sees better value ahead. We like that management has grown cash reserves while buying back stock and retiring debt. It pays a nice dividend, backed by a payout ratio under 10% of cash flow. We recommend trailing up the stop loss (from $14.50) to $15.50, looking to achieve $30.50 -- upside over 58%. Yield 3.3% (Analysts’ price target is $30.50)
household goods
TOP PICK
Stockchase Research Editor: Michael O'Reilly We again reiterate this 120 year old manufacturer of home furnishings, who operates thru 92 stores in the US, as a TOP PICK. It trades at 7x earnings, compared to peers at 13x and is currently valued at 1.1x book value. We like that management has grown cash reserves while buying back stock and retiring debt. It pays a nice dividend, backed by a payout ratio under 10% of cash flow. We continue to recommend a stop loss at $15.50, looking to achieve $30.50 -- upside over 67%. Yield 3.5% (Analysts’ price target is $30.50)
household goods
PAST TOP PICK
(A Top Pick Feb 23/23, Down 14.2%)Stockchase Research Editor: Michael O'Reilly
Our PAST TOP PICK with BSET has triggered its stop at $16.50. To remain disciplined, we recommend covering the position at this time. This will result in a net investment loss of 13%, when combined with the previous buy recommendation.
household goods
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We again reiterate BSET, a 120 year old manufacturer of home furnishings, who operates thru 92 stores in the US, as a TOP PICK. It is currently valued at under book value, while recently reported earnings beat again for the 4th consecutive quarter. We like that management has grown cash reserves while aggressively buying back stock and retiring debt. It pays a nice dividend, backed by a payout ratio under 25% of cash flow. We recommend trailing up the stop (from $15.50) to $16.50, looking to achieve $30.50 -- upside over 55%. Yield 3.1%
(Analysts’ price target is $30.50)