UTK #2
I bought 1/3 invetment unit in both SCSS and UTK last week, at $20.50 and $13.99 respectively. Both closed at lower price on Friday, and they stayed in my watch list.
Sam asked about UTK in the last post:
I am amazed and excited by the way this stock is evaluated at this point. The stock is treated much similar to an American Auto industry stock(such as GM, F). Auto industry is a capital intensive and highly competitive business, very thin profit, or negative profit, its Book value played an important role to value the stock (P/B between 1 to 2). UTK is nothing like that - it has no debt, very decent profit margin in a less competitive business sector. Though the stock exposes certain risk in short term, I think it will be one of the most rewarding stocks in my portolio in next 1-2 year. BUY.
SCSS is another one I am excited about. In short, the company manufactures and sells mattress that can adjust firmness - called Sleeping Number. Details, please check its website. Here is why I am excited about it:
Attractive Product - I couldn't think of any better way to personalize a mattress (sleeping number), and it has a few product lines starting from +$1,000.
Disciplined Pricing Strategy - Simple pricing, some promotion from time to time, with 5% - 10% dscount only.
Efficient Store Setting - Compact store (that's cost saving, but I feel these stores neat and comfortable), knowledgable sales with no pressure.
Excellent Financial Numbers - No debt, health profit margin (6.5%), respectable ROA(24%) that reflects its management efficiency, steady revenue growth (>15%), and moderate P/E (21).
Enough reasons to BUY?
Sam asked about UTK in the last post:
You mentioned that you have UTK on your watchlist, but you didnt mention at what price it would be attractive to you. when are you planning to jump in, if at all?In long term, the price right now is attractive. I bought 1/3 last week, and will continue to buy the remaing 2/3 next week. To me, Friday's report is neutral, its acquired stock value adjustment should be a normal part of this business, though the market disagrees, pushed the stock down another 10%.
I am amazed and excited by the way this stock is evaluated at this point. The stock is treated much similar to an American Auto industry stock(such as GM, F). Auto industry is a capital intensive and highly competitive business, very thin profit, or negative profit, its Book value played an important role to value the stock (P/B between 1 to 2). UTK is nothing like that - it has no debt, very decent profit margin in a less competitive business sector. Though the stock exposes certain risk in short term, I think it will be one of the most rewarding stocks in my portolio in next 1-2 year. BUY.
SCSS is another one I am excited about. In short, the company manufactures and sells mattress that can adjust firmness - called Sleeping Number. Details, please check its website. Here is why I am excited about it:
Attractive Product - I couldn't think of any better way to personalize a mattress (sleeping number), and it has a few product lines starting from +$1,000.
Disciplined Pricing Strategy - Simple pricing, some promotion from time to time, with 5% - 10% dscount only.
Efficient Store Setting - Compact store (that's cost saving, but I feel these stores neat and comfortable), knowledgable sales with no pressure.
Excellent Financial Numbers - No debt, health profit margin (6.5%), respectable ROA(24%) that reflects its management efficiency, steady revenue growth (>15%), and moderate P/E (21).
Enough reasons to BUY?
posted by Siyu LI at
8:13 AM
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