BSET, SYF, LC

None of the stocks I’ve been watching came into a reasonable price range today.

BSET-BASSETT FURNITURE INDUSTRIES INC-I’ve had my eyes on this company for a while, and I’ve watched them triple in price.  Trading at 24.22, they are above their 52 week low of 19.75, and they are up 25% on the year.  Dividend is at .36.  EPS is at 1.686.  Cap is 270.07m.  Short interest is at 1.87.  Analysts are very bullish.  Mom and dad don’t like this furniture. They have 16.1 in book.   Current p/e is 14.  The average is at about 13.78.  Earnings this year are expected at 14.38.  In 3-5, who knows.  Book is growing at 7.29.  Return on equity is at 10.98.  Debt is at 5.03%.  Let’s say they continue growing book at 7.29.  We could see dividends at 3.15 with tax and 10.  We could see book at 32.54, and EPS at 3.57, and thus a price of 48.195 plus dividends of 3.15 for a value of 51.345. That would be 7.8% growth.  I’d buy if they were at 12.5 and earnings were still there.

SYF-SYNCHRONY FINANCIAL-Is trading at 28.03, near their 52 week low of 26.28.  P/E is at 10.47.  Cap is 23.05.  Short interest is at 1.19.  PEG ratio indicates they might be overweight.  Analysts are very bullish.  Book is at 14.58 per share.  Earnings growth this year is at 6.46.  In 3-5 its at 3.84.  Book is growing at 17.99.  Return on equity is at 19.43. Debt is high at 213.24…that’s the way it always is for these credit card companies.  Historical return on equity is at abut 25 for the last couple of years.  These guys do credit cards for different stores.  How are they gonna grow if all the stores are suffering? Huh?  Huh?  Ya.  Anyway, my analysis says, based on future book growth of 58.98, we’ll have EPS of say 11.2.  And we could see a price of 112.  I can buy at 27.5.  They just need to come down a bit more.

LC-LENDINGCLUB CORPORATION-These guys are down 65% on the year, trading at 7.34.  Short interest is at 12.67.  Cap is 2.92b.  No P/E.  No dividend.  Analysts are bearish.  Book is at 2.69 per share.  EPS this year is at 108.33.  Next 3-5 is at 98.  Book growth is neutral.  Return on equity is negative.  Tons of debt…348 to equity.  Earnings are weird…new IPO?  Spotty, but looks like they are improving or getting steady.  Insiders own 17.3.  I can’t speculate they’ll become profitable.  It wouldn’t be right.  I think their stock is gonna pop. though.

 

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