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MLHR - Herman Miller


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MLHR is super cheap. P/E is around 4.25 as of Mar 17, 2020.

 

I guess people suspect that no one will buy office furniture because of WFH during the coronavirus crisis. But considering that might be a short term thing, is this kind of sell-off warranted?

 

It is arguably the most famous and recognizable office furniture brand (I couldn't recall any competitors off the top of my head) with a long history. Their Aeron chair is iconic and dubbed as "America's best selling chair".

 

Their consumer segment is growing (in contrast to the office) -- although more people might be working from home in the future, this might mean just a shift in who purchases their products. Also, it seems like the international market is untapped.

 

Thoughts?

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  • 3 months later...

I'm starting to see that office chairs are getting sold out at retailers. My guess is that as people/companies take WFH more seriously, they will buy high-end office furniture at home too. But not sure if this will be enough to offset the decreased demand in office space furniture.

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Seems cheap after 15 seconds of careful fundamental research, I'll buy some

 

lol.

 

I didn't even know this was a public company, cool. Was just thinking about buying a new Aeron chair as my old one is pretty much falling apart. One of my best purchases ever. Do they give discounts to shareholders? Also, some cursory research shows a decent insider buy last month by the former CEO and current "chair"-man (pun intended). I'll put this name on the bottom of my 'interesting' list. That means I could potentially read an annual report as soon as 2023.

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Seems cheap after 15 seconds of careful fundamental research, I'll buy some

 

lol.

 

I didn't even know this was a public company, cool. Was just thinking about buying a new Aeron chair as my old one is pretty much falling apart. One of my best purchases ever. Do they give discounts to shareholders? Also, some cursory research shows a decent insider buy last month by the former CEO and current "chair"-man (pun intended). I'll put this name on the bottom of my 'interesting' list. That means I could potentially read an annual report as soon as 2023.

 

I encourage you to get an Eames chair while you are at it. It will make reading through your 'interesting' list such a joy.

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  • 2 months later...
Guest longinvestor

Herman Miller is iconic for another reason. They are molded after Toyota’s iconic production system and probably one of the best emulators out there. At least in North America. I work in this area and folks in the know of TPS have deep respect for HM. What it really means is that they are very likely withstanding the downturn as well as possible. And preparing to hit the road running faster and better than their competition.

 

I don’t know much about their market power.

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MLHR is super cheap. P/E is around 4.25 as of Mar 17, 2020.

 

I guess people suspect that no one will buy office furniture because of WFH during the coronavirus crisis. But considering that might be a short term thing, is this kind of sell-off warranted?

 

It is arguably the most famous and recognizable office furniture brand (I couldn't recall any competitors off the top of my head) with a long history. Their Aeron chair is iconic and dubbed as "America's best selling chair".

 

Their consumer segment is growing (in contrast to the office) -- although more people might be working from home in the future, this might mean just a shift in who purchases their products. Also, it seems like the international market is untapped.

 

Thoughts?

 

Well, Vancouver's city hall had no problem spending $1,500 a chair at Herman Miller for their renovations.  What jack asses...and how frickin' out of touch is the Mayor and his city manager?  Cheers!

 

https://globalnews.ca/news/7339783/vancouver-city-hall-furniture/

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Hey are we up 70% on this?  Score one for careful fundamental research

 

:D

 

Well done. I guess it's all easy in the mirror, but this checked a lot of good boxes at the time. Of course I didn't buy it. Also note that the option grants dated July, 14 might have been a harbinger of things to come: https://www.sec.gov/ix?doc=/Archives/edgar/data/66382/000006638220000034/hmi8k07172020.htm . After years of granting performance stock units, the board suddenly switches to granting loads of options with a strike at a 10% premium to market price. That's quite rare.

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Hey are we up 70% on this?  Score one for careful fundamental research

 

:D

 

Well done. I guess it's all easy in the mirror, but this checked a lot of good boxes at the time. Of course I didn't buy it. Also note that the option grants dated July, 14 might have been a harbinger of things to come: https://www.sec.gov/ix?doc=/Archives/edgar/data/66382/000006638220000034/hmi8k07172020.htm . After years of granting performance stock units, the board suddenly switches to granting loads of options with a strike at a 10% premium to market price. That's quite rare.

 

A 130% or so gain since it was originally mentioned?  And yeah it's the sort of thing you were not sure you were going to make money in at the beginning because of all the covid stuff, and now you're still not sure whether you should have made money.  I'm still going to cash the check though, and assume that the goddess Fortuna spins me upwards for now

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