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American Furniture Companies at 52-week Low

August 01, 2013 | About:
Sally Jones

Sally Jones

49 followers
This could be a case of "when bad things happen to good furniture companies" but with homebuilding in a possible recovery mode, American furniture companies could also bounce back.

Here’s a look at what goes inside those new homes: new furniture. As furniture makers increase outsourcing and the U.S. manufacturing sector declines, investors must be wondering about the future of American furniture companies. Trading histories show Guru billionaires have taken years of losses, especially in the case of Furniture Brand International Inc. (FBN), but the recent insider trades at Furniture Brand may be some indication of what we can expect from Guru shareholders when their second quarter trading activity in this sector is revealed.

Here’s a look at two highlights from the manufacturing sector of furniture and apparel, with a focus on American furniture companies on a 52-week low.

Industry Sector: Manufacturing – Furniture and Apparel

This week the furniture and apparel manufacturing sector lists 10 stocks out of 86 that are on a 52-week low. The low ratio is 0.12.



Highlight: Furniture Brands International Inc. (FBN)

The current FBN share price is $2.43 or 80.9% off the 52-week high of $12.74.

Down 68% over 12 months, FBN has a market cap of $72.8 million, and trades at a P/B of 0.60.

Company: The Missouri-based company Furniture Brands makes some of the best known brands in the furniture industry, including Thomasville, Broyhill, Lane, Drexel Heritage, Henredon, Pearson, Hickory Chair, Lane Venture, Maitland-Smith and La Barge.

Guru Owners: Top Guru shareholder Chuck Royce has taken a long column of losses on FBN across a five-year history that coincides with the sharp decline of furniture manufacturing in the US. Royce’s trading history shows an average loss of 97% on shares bought and an average loss of 98% on shares sold. The FBN trading histories of other Guru shareholders Howard Marks, HOTCHKIS & WILEY, and Jim Simons tell a similar story.



Historical pricing:

1375221283657.png

Recent Insider Trading at FBN

Insider trading shows that 10% owner and major shareholder Kuo Shan Huei sold 72,142 shares last week. See the details of FBN insider trades here.



Highlight: Stanley Furniture Company Inc. (STLY)


The current STLY share price is $3.47 or 30.6% off the 52-week high of $5.00.

Down 15% over 12 months, STLY has a market cap of $50 million, and trades at a P/E of 1.80 and a P/B of 0.60.

Company: Stanley Furniture Company Inc. (STLY) is a designer, manufacturer and importer of residential wood furniture targeted at the premium price range. The company offers product lines across all major style and product categories, branding the company as a complete wood furniture resource for retailers.

Guru Owners: As of the first quarter of 2013, a number of Guru shareholders were holding STLY, including top Guru shareholder Third Avenue Management, and Chuck Royce, Donald Smith, Martin Whitman and Jim Simons.



Historical pricing:

1375222503996.png

Check out the GuruFocus special feature 52-week low screener to find the stocks hitting new lows but are still held by top investor Gurus and Insiders.

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GuruFocus Real Time Picks reports the stock purchases and sales that Gurus have made within the prior 2 weeks. The report time lag can be as short as 2 days after the date of the transaction. This feature is for Premium Members only.

Check out the GuruFocus special feature 52-week low screener to find the stocks hitting new lows but are still held by top investor Gurus and Insiders.

About the author:

Sally Jones
Sally Jones writes about Real Time Picks. She says, "I truly enjoy watching the Gurus in realtime and telling their story."

Rating: 4.2/5 (6 votes)

Comments

kfh227
Kfh227 premium member - 1 year ago


I've watched FBN faulter for years. I was actually an owner pre split, made money and sold. This was 1-2 years ago maybe.

I'd ignore Mr Royce's trades. He owns 1300 stocks.

As for FBN, the big problem is that furniture is beign commoditized. That more or less means that people care less and less about branding in furniture these days.

Having said that, I always keep an eye on FBN for a turnaround. I just don't see it happening anytime soon.

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