I've been holding this stock for several years now, buying in as it dropped from 18 something to , what 6.75? averaged in at 10.35 to 11.75 depending on which account. Perhaps it is too big a share of my portfolio, but they are a frickin cash machine! debt free, more or less, now up to 5x earnings. My 20 something friend says his parents like to go to the store because they "enjoy the experience" whatever that means.
I did the same thing with Gamestop several years. in 2009 they were making MONEY when many other companies were loosing money, and their shares just kept dropping, and I kept buying. usually I am a Fool LTBH type guy, but every now and then I see something that doesn't make sense, and I take advantage of it. You could buy now and still realize a 20% gain over the next couple years as the economy turns around, retail improvement in general floats all boats, HGG being one of them. Or, since this will probably drop again before it continues up, watch it and pick some up when some of the government contrived BS drops the entire market temporarily (which means one week to two years) and wait it out. When it gets to 19-20, I intend to sell about half and then sit on the rest till I either retire or something in the market changes my mind.
when it gets to 19-20? lol. yea they have no debt but they only have 12 million in cash. That is pathetic. They also are getting their butt kicked in the furniture/mattress business. You should get out now.
Oh, look, I sold some today at 20. Still holding some for another year as the economy train gets up enough steam to finally leave the station. Who knows, maybe something else will be happening then. Guess we'll just wait and see.
Yeah, you should get out now, when the stock is finally turning around and on a significant winning streak. That is the most pathetic advice. If you've had the balls to hold onto this stock when it has gone has low as 30% from your purchase point like I have, I think it's worth it to stick around a bit longer and see what happens now. Time will tell.
Are you one of the shorters, freight? If so, you must feel its going down. I'm long, because hgg has EARNINGS per share, have expanded without debt, and targeted cities with high foreclosure rates. As those houses turn, new renters or owners are going to be picking up some stuff. Stuff that HGG sells. Lets see what happens in 2 years.
I'm saying buy, but if you don't want to do that, then at least hold.
What's your source for this info?
Cash is 15.5M and should continue to go up slowly. Book value is 10.60
"They also are getting their butt kicked in the furniture/mattress business." By whom? Plus, why is that so important? HGG is an electronics retailer, most of their revenue is extracted from electronics and video. It was the slowing of revenues in video that depressed the stock so much, because of cyclical reasons, but HGG is re-inventing itself with other categories to make up the difference.