Somebody should write a letter to Warren Buffett to invite him to look at Man Wah Holdings. He bought Nebraska Furniture before, so he should be familiar with this industry. :laugh: :laugh:
Did any of you read this report by Phillip Securities? They are so negative on the furniture industry. Calling for SELL on ALL furniture companies in Singapore.
FURNITURE INDUSTRY We believe that the furniture industry will be facing tougher times in 2009. In the recent quarters, furniture companies listed on the Singapore Exchange have been reporting lower revenue growth and net profit growth, citing decline to the impending negative impact of the global economic slowdown, and in particular the housing market collapse and the credit crisis in the U.S., with respect to the global furniture industry. Due to purchasing power parity, the United States of America and Europe remains the main markets of furniture export for majority of the furniture companies. These markets have been contributing to the growth in these companies due to the housing boom in the respective markets. However, times have changed. Home foreclosures have been increasing and the level of unemployment has also been increasing. Therefore, we are taking a pessimistic stance on the furniture industry.
The market has been selling down furniture companies for more than a year. Now that they are trading already so low, Phillip come out to say the obvious and issue a sell for all furniture stocks. It would have been a right call a year ago but definitely not now. The current price has more than reflected the headwind facing the industry. Unless these companies cannot survive the crisis, this is not the right time to sell. Below is a list of the price of the 7 stocks covered in the Phillip report as at 31/12/07 and last Friday. ................. 31/12/07.. 12/12/08.. Down Cacola.......... 0.405..... 0.065...... 84% Koda............ 0.77....... 0.14....... 82% HTL.............. 0.525..... 0.11....... 79% Sitra............. 0.35....... 0.08....... 77% Lorenzo......... 0.285..... 0.085...... 70% Design Studio.. 0.55....... 0.18....... 67% Man Wah....... 0.3025.... 0.155..... 49%
Yes, I agreed. This analyst is really silly. Saying the obvious. If she wrote the report one year ago, I will praise her now. Her report last week was \"adding legs to a snake\" ZERO VALUE.... In this market, SIZE matters. I believe at the end of this winter, only the bigger boys like HTL and Man Wah will survive this winter. :ohmy: :ohmy:
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