Tuesday, June 12, 2018

Restoration Hardware up over 20% Pre-Market, Short Opportunity?

After seeing the massive move to the upside for RH in the aftermarket yesterday I was intrigued. Being the fundamentalist I am. Maybe there was a situation I might have missed out on. Here is the short answer for all you value investors, you didn't miss a great company.

The longer answer: The fundamentals of the company are lackluster. Yes, revenues have been increasing but the low gross margin and even lower don't make this company look appetizing. And the ROE is disappointing.

I don't mean to be the gray cloud over the 20% move to the upside, but to me, there is nothing screaming buy here.

What do you think? Am I missing something?



Submitted June 12, 2018 at 08:40AM by sisumoney https://ift.tt/2HHVYGg

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