Stockchase Opinions

David Taylor, MBA, CFA Shermag SMG-T BUY Sep 12, 2003

Trades at 10 X earnings, 6 X EBITA. A good core holding.
$15.100

Stock price when the opinion was issued

household goods
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TOP PICK
Vertically integrated.Retailers have exclusivity. 7 X earnings.
PAST TOP PICK
(Was a top pick on Aug 16/00 up 20%) Still only trading at 9 X trailing earnings. Good price.
TRADE
A furniture manufacturer and at a 52 week low. Battling cheap imports and currency. This is the type of company that they look at. Talking to management in a couple of weeks to try and see what's going on.
TRADE
Had some bad luck/decisions. Over 1-3 years will have a shot.
DON'T BUY
In the furniture business. They are getting hammered by Chinese imports. Difficult for them to compete. Debt level has gone up.
WATCH

Spring is the event and you want to be in a couple of months before, so right now. As soon as it makes an uptick would be a good time.

DON'T BUY

Pays a 3.75% yield and they had a good season (they're a seasonal stock). He also likes their environmental products. But it trades at a too high 26x PE.