I heard that the EVP of sales is leaving. REALLY shitty 1st qtr coming up...I wonder if the sales guy is taking the hit.
2007 isn't going to be a stellar year for Select Comfort. 2008 should be a good year though.
I am wondering the same thing you are. The stock has just been a major disappointment and every time I look at my portfolio the word "dead money" pops into my head. That said, your mention of a toilet gave me a great idea for Select Comfort. I think the potential is huge and untapped in this market.
I introduce to you the Select Comfort toilet seat! "What's your poop number?" :) What do you think?
I'm going to be very interested in TPX numbers tonight. If they are good, SCSS will be crushed next week. I think there will a serious revenue miss by SCSS...that will be hard to explain if TPX has a good qtr. We know that the SCSS qtr will be weak, we don't know how weak.
There are troubles. It's called the ECONOMY. People are actually scared.
Select Comfort bed is a wonderful product, but you can't fight a bad economy. Those that can buy a bed will buy it, those that can't afford it will never buy it. The problem is in the middle, the margin, those people will defer the purchase. That margin will grow as the economy get worse.
I'm guessing that sales will be a little better than flat this qtr, but there is no way that 2007 will be $900-925 mill. Worse, it is still declining because the worst for the economy is still ahead.
The retail partners are digging into the company stores. I'm told that the new inquiries are off by a shocking amount..so that paints the picture for the immediate future. The low volume company stores will be an albatross going forward. Leverage works both ways.
The 1st qtr earnings report could be ugly, if they have to revise the plan twice in six months.
This is a wonderful company, but the stock will be hypersensitive to economic conditions. TMF notwithstanding, better to buy the stock on the first sign of an improving economy.
Tempurpedic is beating Select Comfort and I can't figure out why.
Sell for now.
Trouble or not, Motley fools continue to promote SCSS while share price continue to fall.
This may be a case while fools make their bet based on old data while the market anticipate a downturn in the making.
The air has been leaking out of this company. The leak may be small but detectible. Another bad quarter, this stock could sink much further.