My guess is the first real action we'll see in this stock is when some firm issues a performance rating. From there, the outlook should get better. This company is not trading at some ridiculous multiple - and it's growing fast. It might be hard to imagine people buying their overpriced furniture. A first glance inside one of their stores and you realize you could pay a few hundred dollars more for superior quality. But that thought misses this company's biggest potential customers. The market for DWRI's products is not individuals so much as it's restaurants, doctors, lawyers and new start-ups. Say I'm buying some new office furniture and I want to impress my otherwise taste-senseless customers. DWRI's products can be had for well below other store's prices, shipped fast and make an impression on the customer. The same is true of restaurants, bars and small businesses. That's the niche. Right now this company's shares represent my strongest position. My target is 30 per share.
In my opinion there are more cost effective retail options for lawyers, doctors, PR firms, etc to purchase good looking furniture with the image they are trying to project. Maybe the one or two person office is a customer but not the larger size offices. (Unless DWRI is willing to offer some pretty attractive discounts).
DWRI I think would appeal to the individual purchasor who appreciates the design(er) aspect of what they are selling.
My question is how many people are there that fit this customer mold - how far can they expand this concept before they run out of high income design concious customers ?