There has been some fairly large buying in specific companies that have seen steep declines, suggests Tim Melvin, a leading growth stock expert and editor of The 20% Letter.

Patient-aggressive investors might want to consider MillerKnoll Inc. (MLKN), as the long-term profit potential appears to be quite large. The company makes furniture for the office and home, as well as furniture specifically designed for the healthcare and education markets. Its brands including Herman Miller, Knoll, Layout Studio, Imagine Desking Systems, and Generation. 

The company missed the estimates from the analysts who follow the stock, and the shares were crushed. The actual report was not awful. Revenues were up 77%, with earnings increasing by 86% year over year.

Management said in the report that now that the worst of the pandemic is behind us, they would once again begin buying back stock in the open market.

The merger of Miller and Knolls that was completed last year is paying off in a big way, and it’s about to get better. The company announced that the new MillerKnoll sales and dealer network in North America was launched in June of this year.

Wall Street was not impressed, and the stock has fallen about 50% from its highs. However, CEO Andrea Own thinks the stock has fallen too far and has scooped up more than $1 million worth of shares.

The stock is yielding 4.9%, and the dividend is easily covered by the cash generated by the MillerKnoll Company post-merger. The company should do well despite the weakening economy, and it is hard not to see the stock price at several multiples of the current price higher over the next several years.

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