I have not been the biggest fan of Headwaters' (HW)
twin strategies of growth-by-acquisition and
acquisitions-funded-by-debt, but the reality is that this company is
doing a pretty good job of growing at a time when many housing-leveraged
materials companies have yet to really catch their stride. Better
still, there's a chance that the company's architectural stone siding
products could grow from rounding error in the overall U.S. siding
market to a significant business, a move that would have significant
implications for the company's revenue and profits.
Certainly
there is a difference between what can happen and what will happen. I
nevertheless lean positive on this company, as the housing recovery is
still in its early years and just 1% share of the U.S. siding market
could mean a 15% shift in revenue from FY2013's base.
Continue reading here:
Headwaters Doing Well In An Improving Market
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