Key reasons for HGG being non-performing
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Key Reasons for HGG non-performing going ahead
1) Ever increasing Online Shopping for Home appliance. TOO MUCH COMPETITION from Online sellers. Situation will be worse in future.
2) Flying gas prices will stick buyers at home. No sigh gas price will come down.
3) Narrow range of products in HGG shelf cannot attracts enough people. This mirrors the HGG weak pricing capability and low risk taking ability.
Conclusion: HGG can hardly be the next Bestbuy with the current big-box business mode. Sales will grow at maximum 10%, but margin is razor thin and will grow slower. Current price is tempting but future upside potential is limited.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.
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