Out Fox The $treet

Wayfair (W)  is down about $70 from the all-time highs back in March to $105. The recent repeated negative calls by Citron Research on the online furniture stock actually could signal the bottom. The noted short seller isn't highly bearish on the stock where others he has claimed the stocks were virtually worthless. Citron just picks the stock to dip further to $70.  Citron Research @CitronResearch $ W It Doesn't Matter Until it Matters https:// citronresearch.com/it-doesnt-matt er-until-it-matters/  … It Doesn't Matter Until It Matters - Citron Research With new market realities, Wayfair should quickly trade down to $70. Anyone who follows Citron knows that we have been bearish on Wayfair for YEARS as we never thought selling furniture online with... citronresearch.com 46 1:07 PM - Oct 1, 2019 Twitter Ads info and privacy 22 people are talking about this Wayfair still appears ...

Despite reporting another large loss, Wayfair (W) surged back to all-time highs around $150. The stock that offered a appealing entry point in the $80s isn't nearly as appealing up at $150.

Based in part on the negative call by Citron Research, Wayfair (W) is down below $85 now. My previous articles ($$) were negative on the stock due to the similar issues of diseconomies of scale. Until the online furniture company shows that offering a global delivery network for heavy furniture items can scale profitably, the stock is likely to struggle. Citron has a $40 target on the stock, but something closer to $70 appears the most likely short-term target. My view is more constructive long term. The retail experience in the furniture market is less than desirable leaving a big opportunity for Wayfair that offers a better service and selection. The question is whether the company can leverage an already large tech department and turn this into a real business. Disclosure: No position. Please review the disclaimer page for more details. 

In general, most furniture manufacturing stocks peaked at least a decade ago. That is, until the recent housing rebound and reduced competition led to a rebound in the space. Sector leaders such as Bassett Furniture ( BSET ) and Hooker Furniture ( HOFT ) continue to see rising share prices, but both stocks remain considerably below all-time highs. Upstart manufacturer Nova Lifestyle ( OTC:STVS ) trades close to all-time highs after several acquisitions have helped push up revenues and profits. Even though furniture manufacturing has turned into a commodity business, most of these stocks are solidly profitable these days. Due to all of them having relatively small market capitalizations, none of these stocks obtains much in the way of analyst coverage either. With Nova Lifestyle, investors now have the opportunity to discover it before the market learns about it and its growth potential. Read the full article at Seeking Alpha. Disclosure: No positions mentioned. Plea...