Stock price when the opinion was issued
(A Top Pick March 28/16. Up 1%.) This had an amazing 2015, but 2016 not so much, although fundamentals have been very strong. They transformed their business in the last 6 months. Made an acquisition of Rugby. They used to only sell flooring and value added hardwood lumber goods, but now it has thousands of skews of different products such as commercial real estate, construction, etc. mainly in the US. This is still a Buy.
(A Top Pick Dec 20/16. Up 8%.) This sells value added lumber products, mainly in the US, but also in Canada. We are just at batting practice for a housing boom in the US. There are more millennials then there are baby boomers, so this company will benefit, as 60%-70% of their revenues are tied to residential housing.
Billy Kawasaki’s Insights - Billy’s most-liked answers from 5i Research. The sector and in particular the company has shown good momentum. Good cash flow off-sets their stretched balance sheet. Cheap on valuation. Unlock Premium - Try 5i Free