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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Sisyphus who wrote (73517)	8/30/2023 5:24:19 AM
From: Harshu Vyas	Respond to of 78753

Hi Sisyphus, Still quite expensive for a cyclical - WSM is worth waiting out. Shown by the fact revenues, gross and operating margins are down YoY. Don't be tempted by the "low" PE or the high ROE imo. Maybe cash flow numbers are better this year as management cut down on inventory and collect receivables faster. Still, I think there are better investments out there based on sheer value. Don't even think management should be repurchasing shares at this valuation - will only harm shareholders in the long-term. That said, it seems to be a decent company - if you hold it until the next cycle I'm sure you do ok. It's also possible that I've underestimated the strength of the US economy - was reading just yesterday that house prices continue to rise despite higher rates. If there continues to be strong demand for housing, WSM win. To conclude, not for me. Best, Harshu Vyas