Thank you............ Paul K
The stock started taking its hits in early May, after Q1 results which were disappointing and missed estimates by a wide margin. Sales fell 5%, EBITDA fell 19% and profits plunged to near-zero. Expenses also were out of line for the sales base. Hearth products were particularly weak. Net debt is $58M, quite high compared with $11M cash flow. Payout ratio rose to 66% from 58%, but still reasonable. As a small cap stock ($137M) one needs to accept volatility. There has been some weakness in consumer spending of late. At 20X earnings, one would think it is expensive due to its small size, but the valuation is actually well-below its historical averages. There has been some insider buying. We would consider it today a HOLD for an eventual recovery. A higher risk stock, but consensus still expects decent growth over the next two years.