New Pick: Buy Restoration Hardware (RH)
from Cabot Top Ten Trader
Instead, I like Restoration Hardware (RH), which, after going private for a few years, came public in late-2012. It’s the go-to home furnishings provider for the well-to-do, and is revolutionizing the industry by moving away from mall stores and instead opening 40,000 square foot show rooms that are boosting sales. It’s not just marketing, either—the company has cultivated long-term relationships with some of the best designers in the world.
Growth has been excellent and regularly exceeded expectations, and the stock just broke out from a beautiful year-long base. I think it’s a new leader that can do very well for the rest of the year.
Michael Cintolo, Cabot Top Ten Trader, www.cabot.net, 978-745-5532, July 7, 2014