Saturday, January 11, 2014

Seeking Alpha: Headwaters Still Building For The Housing Recovery

The Street may have seen some of its enthusiasm for housing-related names fade around mid-year of 2013, but Headwaters (HW) management continues to build up its operations to take advantage of what management believes can be a solid long-term opportunity. Better still, Headwaters' recent financial performance relative to other companies exposed to residential construction and remodeling (names like Ply Gem (PGEM) and RPM International (RPM)) has been pretty good.

Although I wish Headwaters would use less debt to fuel its growth ambitions, I can't deny that the end result could be some very significant growth if or when the housing market really gets moving again. Cash flow-based modeling for these housing/remodeling plays still demands a lot of guesswork, but if you believe that Headwaters is poised for a few years of double-digit EBITDA growth it looks as though there's still a very good argument for owning these shares today.

Please read more here:
Headwaters Still Building For The Housing Recovery

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