I've been telling you this since I started shorting them over a week ago. Now the market is catchin up. Yummy.
MELBOURNE, Dec 16 (Reuters) - Citigroup has lowered its earnings forecasts for electrical goods and furniture retailer Harvey Norman Holdings Ltd. due to tough trading conditions and pressure on profit margins. Citigroup said price deflation was severe in audio-visual goods, while items such as whitegoods, cooktops and appliances were affected by a housing market slowdown. "While the sector is weak, Harvey Norman continues to take market share. The company is lowering prices and profit margins are being squeezed," Citigroup said in a research report. Citigroup lowered its fiscal 2006 net profit forecast by 5.4 percent to A$184.0 million ($138.0 million) and also cut its fiscal 2007 forecast by 4.7 percent to A$209.8 million. Citigroup has a hold recommendation on the stock and a 12-month price target of A$3.10 a share. Harvey Norman shares were down 1 percent at A$2.96 in morning trade. ($1=A$1.33)
HVN Price at posting:
0.0¢ Sentiment: Sell Disclosure: Held
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