BSET - Merion Road Capital - Bassett Furniture: Under The Radar Stock With Compelling Risk-Reward
2024-04-20 07:20:00 ET
Summary
- Bassett Furniture is a 120-year-old manufacturer, wholesaler, and retailer of upper-middle / upper-end furniture.
- BSET has historically generated a 4-5% EBIT margin across its wholesale and retail business.
- BSET stock truly flies under the radar as it has just $120mm market capitalization and does not host conference calls.
The following segment was excerpted from this fund letter.
Bassett Furniture ( BSET )
One timely position to discuss is Bassett Furniture. BSET is a 120-year-old manufacturer, wholesaler, and retailer of upper-middle / upper-end furniture. This is an asset heavy company. On the back-end they own and operate 2 wood manufacturing facilities in Virginia, 2 upholstery facilities in North Carolina and Alabama, and 3 warehouses. They own and operate 8 retail locations that cover more than 200k sq feet of retail space; and they operate another 49 owned stores that are leased. Additional distribution comes from 31 Bassett branded retail stores operated by 3 rd parties, as well as wholesale sales into other retailers. Up until 2022 BSET had an internal distribution (trucking) company; this was sold to J.B. Hunt for $87mm with part of the proceeds used for a special dividend....
Merion Road Capital - Bassett Furniture: Under The Radar Stock With Compelling Risk-Reward