Harvey Norman storms ahead as usual

Harvey Norman Limited (ASX:HVN) has issued its turnover data for the second six months of calendar 2006. On a same-store basis, sales were up 7.1% on the previous corresponding period, while the absolute figure was an increase of 16.7% to $A2.71bn. All of Harvey Norman's divisions worldwide except for Asia were included, but not sales at its part-owned Rebel Sport business. For the last three months, including the lead-up to Christmas, turnover rose from $A1.25bn to $A1.46bn year-on-year. The newly bought Retravision outlets in New South Wales have not yet had an impact on the result.

I can not remember a time when the sales figures have not increased. Harvey Norman seems to know what consumers want and/or need. Recently they have had sales grow due to Air conditioners, and plasma tvs. I believe the figures will show that tv's are still the big seller and I wouldn't be surprised if the photo kiosk's they are running are making a bundle too. Its a great company but unfortunately everyone knows this and this price is out of reach at a price earnings ratio of 18. It would be wise to wait for it to drop to a more attractive level. Personally I think this share is worth buying anywhere in the low $3.00-$3.15 range.

Good Luck Investing