Sat, Jul 26, 2014, 12:35 AM EDT - U.S. Markets closed

Recent

% | $
Click the to save as a favorite.

Natuzzi SpA Message Board

  • lloyd_barclay lloyd_barclay Oct 15, 2005 6:26 PM Flag

    $18 is reasonable value.

    Natuzzi (NTZ) is a logical choice for contrarian and value investors. I calculate its value to be roughly $18.

    Contrarian
    NTZ is less than 50% of the average of its high and low over the last 10 years. In 1997, it reached a high of about $28 and in 1993 hit a low of about $8. If this average price is a reasonable approximation of fair value, it has 100% on the upside.

    Value
    The upside potential is supported by its value.
    At $8, NTZ is trading at a price/book ratio of 0.78, compared to an average of 2.93 in the Home-Furnishings-and-Fixtures Industry. Its price/sales ratio is 0.53. A price/earnings ratio is not currently available from Yahoo! But using the average net profit margin of the industry of 4.3% to caluculate price/earnings, produces a p/e of 11.3. This compares favorably with the industry average of 18.5.

    Granted it is likely to take a few years to get to $18. But if it takes 3 years to double, that works out to an annualized compound rate of return of 26%. If it takes 5 years, it still works out to 15%.

    To view a portfolio of well-researched value-contrarian stocks, please visit my contrarian website at:

    www.lloydbarclay.com

    Lloyd Barclay

    SortNewest  |  Oldest  |  Most Replied Expand all replies
 
NTZ
2.51+0.03(+1.21%)Jul 25 4:00 PMEDT

Trending Tickers

i
Trending Tickers features significant U.S. stocks showing the most dramatic increase in user interest in Yahoo Finance in the previous hour over historic norms. The list is limited to those equities which trade at least 100,000 shares on an average day and have a market cap of more than $300 million.