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Stock impact report

RH: Berkshire-Owned Upscale Furniture With Luxury Financial Engineering Is A Buy [Seeking Alpha]

RH (RH) 
Last rh earnings: 3/30 04:05 pm Check Earnings Report
Company Research Source: Seeking Alpha
SummaryOver the past years, the business was managed really well. Inventories declined while business expanded.Lower inventories, higher traffic, and margins increased cash flows. Consequently, those were used to do buybacks. Plus, convertible debt was issued to triple down on buybacks.If you invest in RH, you must move fast, as fast as the CEO that recently sold $115 million worth of shares.The financial engineering makes RH more of a trade play based on buybacks rather than a long-term stable investment. It is an extremely cyclical business, a combination that often doesn’t do well with aggressive financial engineering.RH, formerly Restoration Hardware, (NYSE:BRK.ALet’s investigate what is the investing risk and reward so that RH’s investment proposition can be compared to other options in the current relatively favorable investment environment for value investors.Restoration Hardware stock analysis – the business modelA business model that I really admire is IKEA. You are probably Show less Read more
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