"Another analyst said the shares had been unfairly punished today.
"Initial concerns were on cash flow - it was down around 50 per cent in the half to $16 million - and that is mainly because they opened up quite a few new stores in the half," the analyst said.
"We are definitely of the view that the stock should not have been so down because it is a good result - it is a quality result."
For the half year, Harvey Norman opened one store in Slovenia, four in New Zealand and five in Australia - in the Australian Capital Territory, NSW, Queensland and Victoria.
The analyst added that there was no need to review full year forecasts after today's result.
"The result pretty much came bang in line with what we were expecting so there is no real reason to tick that (full year forecast) too far up or down at all," he said.
Harvey Norman said it planned on taking advantage of growth in technology based products such as digital cameras, home entertainment systems and personal computers, introducing two new hybrid concepts.
"Directors anticipate that this innovative concept will see Harvey Norman well placed to service this exciting growth area of the market," the retailer said.
New franchised store openings, including furniture chain Domayne, should positively impact future sales growth, Harvey Norman said."
HVN Price at posting:
0.0¢ Sentiment: None Disclosure: Not Held
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