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
No comments:
Post a Comment