Hi tg, yeah I saw DOW go up up and away...HVN has to be watched...

Hi tg,

yeah I saw DOW go up up and away...

HVN has to be watched very closely at the moment as the selling seems to be still there.

I read that HVN want to sell their property to fund the roll out of further stores. I think this is a positive step although some might not like the extra pressure on the balance sheet.

HVN should start rolling out their new concept stores which won't be a massive boost to revenue but every bit helps. They just don't need 30% growth to justify the current share price. Even 5% EPS growth would suffice and Gerry has stated around 10-15% every year.

People are worried about the housing boom coming to an end and I think it will too but people will still need to purchase tv's, washing machines, couches, dining sets, computers etc etc. Gerry has always managed to get the items off the floor before and I think he'll be able to keep doing it.

A slow down has the effect of getting rid of competition (as the smaller players go bust etc) and helps HVN get even more market share. HVN is flexible and can change product mix quite easily.

Think about the PE ratio... will it go to 10?? I certainly think not, how about 11, 12 or 13?? Hmm, looking at CML and WOW's PE ratios (over 20) I think it's possible in this environment but it wouldn't stay there long.

We should watch for evidence of slow down in sales at HVN and we know this hasn't happened in the first months of this year hence leaving the opportunity for excellent trades as buyers rush to buy HVN when they release 1st qtr sales. Not long now.

Cheers,
Munch.