These Two are Still Cheap at Today’s Prices

Article Excerpt

TEMPUR-PEDIC $26 (New York symbol TPX; SI Rating: Speculative)(800-878-8889; www.tempurpedic.com; Shares outstanding: 83 million; Market cap: $2.2 billion) makes and distributes Swedish Mattresses and Neck Pillows made from its proprietary Tempur pressure-relieving material. The material (which the company refers to as visco-elastic) conforms to the body to provide support and help alleviate pressure points. Products are currently sold in 60 countries. In the three months ended December 31, 2006, sales rose 19%, to $256.6 million from $215.6 million. Earnings rose slightly, to $30.5 million from $30.4 million. However, earnings per share rose 15.7% in the latest quarter, to $0.37 from $0.32, on fewer shares outstanding due to share buybacks. Tempur-Pedic is introducing new mattresses this year to boost sales. The BellaSonna Bed will add a TFlex support base featuring hundreds of individually adjusting cylinders made from a new form of latex. The new SymphonyBed has two layers of Tempur material, plus a lower layer Dual Airflow System which promotes air circulation within…

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