Beacon Roofing Supply (BECN)

They will get bought in a hostile takeover by QXO and have to accept it. He expects a high bid.

He has been frustrated with it. While many housing related stocks are suffering given interest rates rising, he thinks that we are still in the very low interest rate environment. He thinks that people worry about changing level of rates, but that would throw off the housing market. His average client is exposed 0.25% to this name.

It's fallen this year. It should do well on the back of robust demand for U.S. housing, and roofs don't last forever and need replacing. He continues to own it. BECN had a rough first quarter due to poor Q1 weather. They're the second-largest roofer in the U.S. Hang with it.

All the home builders have struggled in reaction to higher interest rates. But these rates are starting from a very low place and won't go very high. 2008 remains fresh in the minds of the Fed, so they are sensitive to the impact of rising rates. New home creation is still below trend in the U.S., so there's a lot of runway here.

He likes this company. They are 2^nd in terms of the roofing business, to a private company. 60% of homes in the US were built before 1980, and it is just a matter of time before they have to spend to redo their roofs. A little lumpy in terms of its results. A lot of that has to do with weather. He believes there is more growth to come.

2^nd largest roofer in the US. A play on new homes, but also a play on the replacement market. 60% of US homes were built prior to 1990. This has had volatility over the years. Wait for an entry that is a little more attractive.

Tends to be volatile, but over time has done quite well. The 2^nd largest roofer in the US. There is new construction in the US, which has been somewhat sluggish, but there is also the replacement market. 60% of homes in the US were built before 1980, so they all need new roofs. This is a high beta stock. Still likes the company and the story.

It is a play on the US housing market: new homes and home repair. You can’t avoid a new roof. They are the second largest roofing company in the US. The metrics are very positive.

(A Top Pick Nov 24/14. Up 48.59%) Housing starts are starting to get some traction. This is the 2^nd largest US roofer. Also, replacement of existing roofs is a big deal. 60% of US homes were built before 1980, so they are now 35 years old and need roofs.

2^nd largest roofing company in North America. Analysis shows that roofing growth is going to be about 6% per year, over the next number of years. 60% of US homes were built prior to 1980, and if your roof needs replacing, you can only put it off for so long. Trading at a reasonable multiple.