Stockchase Opinions

David Driscoll Industrie Natuzzi-SPA NTZ-N TOP PICK Jun 17, 2003

Strong business model. The strong Euro and the SARS in China have hurt. Very undervalued. Dividend.
$8.180

Stock price when the opinion was issued

household goods
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BUY
Break up value is $18 a share. Growing market.
PAST TOP PICK
(A past top pick June 17/03. Up 19%.) Have managed their business very well. As a manufacturing cyclical, they'll probably start having their move.
BUY
Have had competition with Chinese knockoffs plus bad currency translation at the same time they're trying to roll out their US showrooms. Still likes.
BUY
The complication that has occurred now is that the cash flows have dried up with their expansion of marketing in the US. Institutions are buying it for the deep value.
BUY
At a good entry point. Underlying economy is going to be good for the furniture business.
BUY ON WEAKNESS
Doesn't follow closely. Has an excellent track record. Does about $1 billion in sales. Great balance sheet. Trades near the book value.
DON'T BUY
Was getting competition from Chinese knck off furniture and for their first time in history forced lay offs in Italy. The weakness in the US$ was giving them some hard times. Sold his holdings.
DON'T BUY
Suffering from tremendous competition from Chinese manufacturers. Also a big discrepancy on management’s communication in terms of capital they were going to commit to specific stores.
BUY
12% dividend, payout is fairly high. When the price of lamb is high, he buys New Zealand products. They recently spun off a division. Special dividends to be paid out but you are too late to get that now. You will get some growth, but not as much as Asia. It is an ADR so yield is quite high (when New Zealand dollar is high) so it does move around.