RH should be one of the biggest beneficiaries if the housing market rebounds over the next few years; its cheaper-to-build redesigned stores are not priced in and should let it open more locations and drive a radical improvement in profit margins over time.

The second of three options is RH Restoration Hardware. This furniture company, I think, will see a strong housing market rebound over the next few years. I think we're going to see a much stronger housing environment in the next few years , right?

And if that happens, I think RH will be one of the biggest beneficiaries. At the same time , RH is making some very important decisions regarding how stores are built and designed now, and I think that's not being taken into account .

This is a radical change in RH's profit margins, the kind of margins they'll be able to make over the next few years.

I believe RH is benefiting from this change as well. Lower construction costs, the ability to open more stores in more locations, and improved profit margins for RH over time.