LCM

Why Investors Should Short Ethan Allen

YOU DON'T KNOW HOW RIGHT YOU ARE!!!!! As someone who worked for EA for 5 years, I can tell you first hand this company is setting itself up for a big downfall. They opened large retail stores in "marginal" markets EVERYWHERE, with the attitude of "if we built it they will buy". Well guess what, the store I was working at wasn't close to being profitable during 2003 to 2008, so there is absolutely no chance of it being profitable now or even in the distant future. CEO Kathwari, has done a remarkable job of hiding the real picture from investors. As you stated, he created a policy of catering to the "high end" consumer. Unfortunately for Kathwari, his "high end" consumer wasn't TRULY high end..they were "wannabees" and those are exactly the customer base that has been decimated the last 2 years. The majority of purchasers were using credit and home equity loans...NEED I SAY MORE. I was wondering when an analyst would catch on to the real situation!!!! Glad to see someone out there is smart enough to read between the rosey pic painted by the CEO......SHORT THIS BABY AND SHORT IT BIG! ETHAN ALLEN is a HISTORICAL figure and I truly believe based on the knowledge I have, that ETHAN ALLEN the furnishings store will also be a HISTORICAL FIGURE.....IN THE HISTORY OF RETAIL.