Wednesday, 6 February 2008

Actually pulled the trigger on Mohawk

As I mentioned in my previous post, I had my eye on Mohawk (MHK)...well, I just shorted about $16k worth at $78.43.

I'll be honest here...I know jack sh*t about this company...but looking at its profile from Yahoo, I don't see how any company in the carpet/tiling sector can do well in a severe downturn:

Mohawk Industries, Inc., together with its subsidiaries, engages in the production and sale of floor covering products for residential and commercial applications in the United States and Europe. It operates in three segments: Mohawk, Dal-Tile, and Unilin. The Mohawk segment designs, manufactures, and distributes floor covering products, including carpets, rugs, ceramic tiles, hardwood, resilient, and laminates. It markets its products through independent floor covering retailers, home centers, mass merchandisers, department stores, commercial dealers, and commercial end users, as well as through private labeling programs. This segment's products are offered under the Mohawk, Aladdin, Mohawk Home, Bigelow, Durkan, Helios, Horizon, Karastan, Lees, Merit, and Ralph Lauren brand names. The Dal-Tile segment engages in the design, manufacture, and marketing of a line of ceramic and porcelain tiles, and natural stone products. Its ceramic tile products are sold through independent distributors, home center retailers, tile and flooring retailers, and contractors. The Unilin segment produces and sells laminate floorings, as well as insulated roofing and other wood based panels. Mohawk Industries also provides wood flooring products, which include hardwood and laminate flooring. The company was founded in 1988 and is headquartered in Calhoun, Georgia.

Results are February 14, I can't wait. If you need more convincing on this sector, read this recent post by Mish, including the comments section. Lots of negatives on homewares/furniture etc.

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