Import Competition Remains Fierce, But Insteel Is Worth A Look

This is a challenging time to model non-residential construction investment, particularly in the municipal area, as COVID-19 is likely to hammer local and state budgets. On top of that, federal tariff policy remains inconsistent, protecting some companies and leaving other companies more exposed than before.

I was cautious on Insteel (IIIN) back in January, largely due to questions about end-user demand and pricing, and the latter issue has really been relevant in the past couple of quarters. With the shares down almost 30%, though, I wonder if this under-covered small-cap fabricator isn't worth another look. While the outlook for the next couple of years is still very foggy, I like how management has run this business and I believe today's valuation prices in a long-term deterioration of the business that is unlikely to occur.

To read the full article, click the link: 

Import Competition Remains Fierce, But Insteel Is Worth A Look