Stonk Research

3.4 FGI

Boring business that sells sanitaryware and bath furniture, pe is less than 3 and shareholder equtity around 7 million, decently valued compared to the competition, sells like a good buy, will try to bottom fish this company in my rrsp. With rising freight rates, not sure if I should try to play earnings, lets see what the inflation report is like on wedensday, May 11, 2022 and then determine if I should buy according based on my gut feeling.

If the economy keeps going down, fgi will likely tank as sales will decrease, after 284 days, I think the market will recover from the bear market. For fgi in a economic downturn aim for a price of 1.20, ignore pe, as it might be trending down during a recession. With debts of 14.7 million and rising interest rates that should cut into profits, so net income of 5 or 6 million is reasonable.

But with a pe of 2 or 3 with a growing economy, boomers need to upgrade their homes, and with shortage of houses, products should sell, the only matter is margin, shipping rates went down slightly, who knows where production of these products are.

Note to self, failed to time the market in this case.