tag:blogger.com,1999:blog-8338172466331766962.post7416683562918387889..comments2024-03-27T00:22:51.899-04:00Comments on Investment Talk: Leon's Furniture LtdSPBrunnerhttp://www.blogger.com/profile/10497905201043436744noreply@blogger.comBlogger2125tag:blogger.com,1999:blog-8338172466331766962.post-73146709722675964162012-04-29T13:37:47.946-04:002012-04-29T13:37:47.946-04:00Derek Foster discussed Leon's in one of his bo...Derek Foster discussed Leon's in one of his books. I believe the Idiot Millionaire. He found out that the sales people get paid on commission only, to that reduces expenses.<br /><br />He invested in Leon's.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-8338172466331766962.post-4862027009287803422012-04-28T11:52:49.683-04:002012-04-28T11:52:49.683-04:00Hi Sasan,
Definitely with you on this one!This is...Hi Sasan,<br /><br />Definitely with you on this one!This is the sort of dream stock to keep for the long run. I had my timing good on this one the first time: got in at 11.55 in May 2010 and sold at 14.50 Dec 2010. Now I want in again but I am waiting and hoping for a better entry price (low 11s again?) as I think current price is high (P/E of 12 and P/CF of 10 would be great!). They are in tough now with the lousy economy - so sales and EPS are delining or stagnant in the last two years.<br /><br />If I find this entry point, I will stay in longer with the improving economy. Buffet keeps talking about "Mrs. B", the 90-something old Polish woman from the furniture store in Nebraska in his annual letters. If he liked that store so much, I think that he would like Leon's.<br /><br />Dividend increase almost every year, so does Book-Value-Per-Share. ROE around 15%. Reasonably stable business, easy to understand. Strong management-ownershow alignment with the Leon family owning the majority of the stock.<br /><br />The balance sheet is outstanding; NO debt, no iffy goodwill or ingangible; they OWN their own real estate (look at the plant&property line). It is really a REIT and you get the furniture business in their building for free.<br /><br />I'll assess after Q1 results, hope for a quick sell-off to jump in.<br /><br />JonAnonymousnoreply@blogger.com