This industry could be in for some serious cost issues going forward. Raw materials in both plastics and steel will be a drag on all. Knoll is already feeling the pain compounded by lackluster ontime performance and increasing labor cost resulting from lower productivity. These may mot show in the near future results but will certainly emerge not to far down the road. And we hear Moral is getting pretty bad. Top heavey salaries at the top are bloating this short term cash cow.
Your wrong. Insiders sales are simply a fact and oil prices are not or as yet have not declined from the levels that threatened economic growth, but only the recent higher highs brought on by the threat of Rita. What I'm also saying is, how does one justify holding MLHR, Ariel Capital for example, when it's long term trend seems to be set in the same range. At least when you go LT with say, P&G for example, you don't look back.It has certainly appeared that MLHR has had a limited upside and more predictable downside, great earnings or not. How far down could they go if an eventual bad quarter comes along?
A great quarterly report, upward guidance and an upgrade to outperform from market perform. All this good news and the stock is just a tad higher than its 6 month low. After next qtrs. earnings, who knows how low it can go. All I can figure is that no ones buying, or no ones selling or that the positive cycle may be nearing an end. I know thats a lot of figuring, but it didn't take me long. And how about those lumber prices. If I were MLHR and wanted to keep my margins up and freight costs down, I'd finish development of that new invisible chair, 100% recyclable and available in 6000 colors, fabric or leather.
At the beginning of '05, oil was $50 or so, MLHR was $22 or so, and you said MLHR was headed sharply downward due to the impending raw material increases as oil was rising. Now oil is $65+ and Mlhr is $29 (as high as 33 recently) and you are still crying wolf, even though there's a pretty good chance that oil has plateaued and could well come down (Saudis want oil to stabilize in the $45-50 range).
Seems to me that you're being very contradictory in correlating MLHR fortunes to raw material prices (or at least barking up the wrong tree).