10-16-2013, 08:45 AM
(This post was last modified: 10-16-2013, 02:56 PM by hendi_alex.)
I would take a more positive view of LEG. While not holding the stock, would be reasonably comfortable with LEG, which I did hold for a couple of years. What I'm thinking is that while earnings growth has stagnated over the past five years, this is a consumer discretionary company, and the economy has not rebounded as in most recoveries. When and if the economy would return to robust growth, and people start replacing those big ticket consumables, LEG will have a very robust period of earnings growth. The company is well managed, has a wide array of products, has kept debt to a low level, has about $2 per share cash on hand. They are simply waiting on the economy to catch up so that they can ratchet up production.
Alex