RH (RH-N)

They keep posting disappointing numbers and after the latest, the stock dropped 17% today. Is the CEO a visionary or driving RH to ruin? Pre-2021, RH was a juggernaut as they build luxurious stores including dining around the world at their stores. Also, they're moving into real estates, including spas and hotels. They're spending a fortune to build luxurious experiences. But their core business of luxury furnishings is struggling. They've borrowed money to fund this expansion, however, they spent a big chunk of that money to buyback shares just as interest rates rose and the housing market tightened. Can rates fall fast enough to save RH? Doesn't think so. The outlook is dwindling, but the CEO keeps spending.

The market made a mistake in selling it after a downbeat conference call, because RH bought back 17% of shares in just this quarter (23% so far this year). This is one of the biggest single-quarter buybacks he ever heard of. Buybacks shrink EPS, remember, and shows confidence from management

High quality company with excellent management team.
Hit peak revenue during Covid-19 pandemic.
Current share price presenting buying opportunity.
Expecting revenue & margins to grow.
A good long term investment over 5-10 years.

They report Thursday. Likes them, but they've been issuing disappointing numbers and their accounting issues don't inspire confidence.

It was the top performer on the S&P in the first half of 2021. Boasted 78% revenue growth vs. the street's expected 56%. Demand is up 109% year over year, and the adjusted operating margin jumped from 10% to 22.6% He foresees $6 billion in sales in a few year's time. He still sees upside in the second half of 2021, driven by a smart CEO who believes there will be a Roaring 20s spending spree in the economy to. They have staying power. Shares are up 162% over the past year.