Is The Restoration Hardware Stock Really Worth A Shot?

Bullish Studio

As home sales begin to slow down, how do you play the housing trade?  Guy says bond volatility is probably double that of equity volatility.   Guy says that at least now you can make the case that at 12x next years numbers that it is somewhat reasonable on valuation for Restoration Hardware.

Transcript

00:00 Yeah, Brian brought it up as well.

00:01 I mean, I think 10-year yields got up to 330 and changed.

00:04 I mean, seemingly within six or seven, maybe 10 trading days,

00:07 we were down to 275.

00:09 Now we're back either side of 3%.

00:11 You know, again, bond volatility is probably double that

00:14 of equity volatility.

00:15 I think at some point, it manifests itself

00:18 in the equity market.

00:19 In terms of this conversation, though,

00:21 I'm sort of with Tim on this one, a restoration hardware.

00:23 I mean, at least now you can make a case at 12 times

00:26 next year's numbers that it's somewhat

00:28 reasonable on valuation.

00:29 It didn't do a complete round trip

00:31 from those March 2020 lows in terms of the stock price,

00:35 but it got sort of close.

00:36 So you know what?

00:37 I think RH for a play here, given

00:39 what we talked about earlier, it makes a little bit of sense.

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