Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Technical analysis for shorts & longs -- Ignore unavailable to you. Want to Upgrade?

To: Johnny Canuck who wrote (42565)	7/25/2005 3:48:18 PM
From: Johnny Canuck	Read Replies (1) \| Respond to of 70035

07:06 Furniture stocks still look pricey - Barron's According to Barron's, furniture makers and sellers shares have fallen through the floor this year, and for many there's no sign of a rebound on the horizon. Pier 1 (PIR) has tanked 27%, while Ethan Allen (ETH) is down 16% and Bombay (BBA) 12%. Consumer demand for home furnishings is ebbing after a years-long buying binge. Interest rates are rising, and other products, chiefly consumer electronics, have become a bigger draw. Moreover, furniture retailers are facing stiffer competition from mass merchants and dept stores, while manufacturers are seeing a flood of cheap Chinese imports, a trend that is not likely to change meaningfully. Pier 1 shares have been hardest hit, on weakening sales and profits. UBS analyst Brian Nagel says there still is a "significant disconnect" between the fundamental performance of the co and its shares. "We expect weaker sales and gross margins to continue to limit the potential for an earnings recovery at the co for the foreseeable future," he says. At more than 40x '06 estd EPS, Pier 1 represents "one of the most expensive stocks in retail," says Nagel, whose tgt price of $12 implies a P/E multiple of 14x his '06 earnings est.