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Tempur Sealy International Inc. Message Board

  • squeezetracker squeezetracker Jan 16, 2014 8:13 AM Flag

    MFRM up 15% last night; TPX Ready to RIP higher

    MFRM (which sells many different brands including TPX's Sealy in a big way) jumped 15% yesterday on the rumor it is trying to buy Sleep Train in a $200m or so deal that would expand footprint in Ca.

    Great news to see their sponsorship base is willing to support the deal... TPX is the broadline leader now with TPX (high end) the fastest growing segment worldwide and now having Sealy to round out the product lineup from mid to bottom.

    See my post from a few weeks ago, but CONN and MFRM both reported EXCELLENT results for the latest Q, with substantially better than expected mattress sales driving the stocks seriously higher. Meanwhile, SCSS did itself another butch with the second Q in a row of falling short of guidance and estimates for revenue and earnings.

    For fun, have a look at the weekly charts for 3 years and then 1 year. Set your cursor on $49 to see the relationship of that to the extended base and now cup building over both those timeframes -- precisely what every professional manager involved long on TPX is looking at during this little dip ahead of Dec Q earnings and the updated outlook.

    We call the run to $55 until the SCSS butch of big miss for the second Q in a row hit the sector a couple weeks ago a victory for last year (esp vs all the putzes calling for sub $20 with the stock at $38, our key re-entry. PT is $75 for this year.

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    • So you think this consolidation in distributors is going to make them PAY MORE to TPX, because!!!??? When they have MORE leverage to negotiate with you they just going to hand you the cash, right? because they are nice guys... XD

      Look at BBY, another of my retailers that I hedged for this toppy market, down 30% right now!

      Sentiment: Strong Sell

76.47-1.17(-1.51%)Sep 23 4:02 PMEDT