Based on $1.25 EPS, PE of 10 and 15% growth rate for next 5 years

Why do I own it?

# The best run furniture retailer in Australia with a strong founder/owner

# Long term structural tailwinds as population grows and hopefully they can keep taking some additional market share too

# Outstanding ROE and ROC, margins, cash flow and earnings growth for many years

# Possibility of further complementary acquisitions and multiple expansion as time goes on

# Long term plan to expand combined Nick Scali / Plush store count to 180 stores in ANZ.

# They can deliver double digit revenue and earnings growth for 5 + years so the return should exceed our 15%p.a. + target

# The MOS is good at entry point given the PE, PCF and PS.

# Sharing some of their cost advantages through lower prices to maintain market share

What to watch

# Debt to equity and assets trend - want to see it steady or declining ideally as it has crept up recently after Plush acquisition

# Maintenance of current high margins - avoid discounting and margin compression

# Watch accounting etc after recent CFO departure