I do not think I need to rehash what the last few years have been
like for companies tied to the non-residential construction sector in
the United States. Many companies have seen profits plunge and their
long-term viability come into question, but Insteel Industries (IIIN)
has not been among them. The decline in non-residential construction
has indeed created some real challenges for this leading manufacturer of
steel wire reinforcing products, but the company's profits and returns
on capital have held up better than most.
Early-bird investors
have already done well with these shares, as the stock is up more than
300% from its five-year lows and up nearly 60% over the past 12 months.
Despite those significant gains in hand, I believe these shares can go
even further as construction activity recovers and the company benefits
from the leverage of having acquired its primary competitor back in
2010.
Read more here:
Insteel Survived The Bad Times And Can Look Forward To Better Days
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