w*********6
发帖数: 544 | | w*********6
发帖数: 544 | 2 14.5-16.20 through weekend. | w*********6
发帖数: 544 | 3 吃到10%的股友请PM我，有另一今年IPO的PICKER 讨论 | w*********6
发帖数: 544 | 4 TTS 辟谣利好消息
http://seekingalpha.com/article/1848371-why-gothams-allegation-
Tile Shop's (TTS) shares have corrected significantly post a recent report
by Gotham City which alleged the company of being a fraud. The primary
allegation against the company is that its exceptionally high gross margins
are too good to be true and Tile Shop artificially inflates them. Gotham has
also come up with a weird explanation that the company pays its suppliers
off the books to keep its COGS low and inflate its gross margin. I will
discuss why I am calling Gotham explanation weird in a while, but let's take
a look at the allegation first.
Below is Tile Shop's Gross Margin profile:
Gotham has argued that since these gross margins are significantly higher
than Home Depot (HD) or Lowe's (LOW) and even pre bankruptcy Color Tiles -
Tile Shop's only truly comparable peer - there must be something wrong with
it. Color Tiles used to have gross margins between 41% and 49% when it was
still in the business and Gotham suggests that the actual gross margins of
Tile Shop should be in a similar range.
What Gotham forgets to take into consideration is that Color Tiles used to
source majority of the products from domestic suppliers or from suppliers in
Italy, Spain, Brazil and countries in the Far East, including Japan,
Thailand and Korea. On the other hand, Tiles Shop sources over 58% of its
products from Asia and majority of them coming from China. Post Gotham's
articles we have started our channel checks contacting Tile exporters in
Asia and our preliminary results suggest that Tile Shop's Asian sourcing
should give a considerable cost advantage and its 70% plus margins seems
sustainable, especially if it has on ground employees in these countries who
are negotiating rates with suppliers there. And it is not like these
margins are very high as per industry standards. Even U.K. based Topp's
Tiles (LON: TPT) used to enjoy 60% plus margins before 2008 recession. | w*********6
发帖数: 544 | 5 TTS's Tuesday day high was $18.19 and was closed at $17.83
after-market $17.22 so far.
if tomorrow's before-market pricing is still 17~17.50 8:30 EST,
prepare to load some. |
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