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

To: E_K_S who wrote (77359)	4/2/2025 9:13:33 AM
From: Harshu Vyas	2 Recommendations Recommended By Sean Collett Truedarkblue Respond to of 78841

Too complex for me haha.Turnarounds in these industries seem to be difficult. Maybe the old me would have taken a nibble. Great management gives you reassurance, but not conviction and w/out conviction, it's as good as speculation. Seem to be much easier to navigate turnarounds in consumer products/cyclicals where the product is easy to change and the strategy to acquire customers (ex/new) can change rapidly, too. Have watched many of those turn; but not so many outside of that industry (only LUMN, but that was an AI play lol). GAP, WWW,(currently VFC) etc - brands come and go. Buy them on the cheap at less than 1x sales and a single digit cash flow multiple, wait for new management to sell the rubbish, deleverage the balance sheet and unveil a new marketing strategy that pulls in customers from stale brands to these fresh revamps... multiples skyrocket... Wall St overestimate prospects (ANF) and then sell the stock... rinse and repeat. Wall St seems to always overestimate the up/downside in these businesses - but that's also because the constant has been a solid consumer through the last five years. Maybe that changes in the future? Maybe tariffs also make these turnarounds more difficult (Happy Liberation Day). Idk. No strategy is bulletproof, but this is one I wish I focussed on more. Today NKE is doing poorly. It's 2x sales (expensive) but think about the legacy of the brand - Michael Jordan, Tiger Woods, Rafael Nadal ... these moments are etched into the minds of sports fans. There's some nostaligia value to "great" moments that Nike benefits from. That's Nike's historical value BUT what's current? Who's their current sporting great? Nike has never been just another sneaker brand, but that's what they currently are. The brand is boring and overpriced but a turnaround is feasible. At the moment, it's still too expensive for me to bite. Let's see what, CEO, Hill does next. (Note, when I mention cyclicals I *don't* include retailers because they're basically impossible to turn around. Too capital intensive, strategies take too long to implement and there's no real brand value.) I don't really post here anymore because I find better stuff in the UK (but I do lurk and read up on interesting ideas put forward here). Sorry for the long post. Felt if I were going to say something, may as well be something that may be useful to someone.

To: E_K_S who wrote (77359)	4/28/2025 7:45:59 PM
From: E_K_S	Read Replies (1) \| Respond to of 78841

Re: Leggett & Platt Inc (LEG) Post-market 8.59 +1.32 (+18.18%) 19:21 ET Earnings Beat by $0.02/share, reports revs in-line; reaffirms FY25 EPS guidance & rev guidance. This is my 2026/2027 deep value play; reversion to mean play; company is consolidating 50 manufacturing/assembly facilities to less than 30 Leggett & Platt Reports 1Q 2025 Results CARTHAGE, Mo., April 28, 2025 /PRNewswire/ -- 1Q sales of $1.0 billion, a 7% decrease vs 1Q24 1Q EPS of $.22, 1Q adjusted1 EPS of $.24, a $.01 increase vs adjusted1 1Q24 EPS 1Q operating cash flow of $7 million, a $13 million increase vs 1Q24 2025 guidance sales and adjusted EPS unchanged: sales of $4.0–$4.3 billion, EPS of $.85–$1.26; adjusted EPS of $1.00–$1.20 President and CEO Karl Glassman commented, "We are pleased to report better than anticipated first quarter earnings. Our earnings improvement is a testament to the excellent execution of our restructuring plan and operational efficiency improvement initiatives, as well as disciplined cost management. As we navigate the complex and fluid tariff environment, we are mitigating impacts while pursuing any opportunities to capture increased demand for domestically produced products. While we expect that tariffs overall may be a net positive for our business, we are concerned about potential negative effects on inflation, consumer confidence, and discretionary demand. "Now more than ever, we are committed to our strategic priorities of strengthening our balance sheet, improving profitability and operational efficiency, and positioning the company for long-term growth. Our restructuring plan continues to make progress, and in early March we divested a small U.S. machinery business. As part of our ongoing strategic portfolio review, we recently signed an agreement to sell our Aerospace business, which we expect to close this year. "Given our conservative outlook due to macroeconomic uncertainties as we entered the year and despite the current trade policy uncertainties, we are maintaining our sales and adjusted EPS guidance for 2025. Although the domestic bedding industry is now expected to be more challenged than previously anticipated, the resulting lower volume will likely be offset primarily by steel-related tariff benefits. Our business is resilient, and with the support of our dedicated employees, we remain confident in our ability to successfully execute our strategic priorities and deliver long-term shareholder value." -------------------------------------------------------------------------------------------------------