Mark Yagalla
Gold, currencies, macro, commodities

Don't Mistake Knoll's Temporary Weakness For A Long-Term Trend

Executive summary:

  • Look for a turnaround in shares of Knoll this year on a rebound in the commercial office sector.
  • The new acquisition of Holly Hunt will not only grow revenues, but diversifies the business model.
  • Investors should look for growth from its e-commerce business, as well as its studio, coverings and seating businesses.
  • Margin improvement should kick in the latter part of this year.

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There's a point where value investors start to circle a company. That's a different level for every investor. For me, one such level is when a company is near the bottom of a cyclical downtrend and grossly unloved. Knoll (NYSE:KNL) is down 25% over the last three years, while the S&P 500...

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