Vulcan Materials Co. (VMC-N)

They make concrete and have a lock on the US South. It's an election play, building infrastructure (roads) and Americans need to spend on this. He sold it because it had a good run and this sector may not be as robust as he thought.

These are two of the better names in this space. Performance so far this year has been strong in earnings and balance sheet. Disagrees with that downgrade and he continues to hold.

Excellent business that is very stable.
Road building company that provides essential service for infrastructure spending. 
Large US Federal contracts. 
Stable revenue streams.
High barriers to entry. 

VMC pays a decent yield of 0.8%, and analysts expect earnings and sales to grow nicely in the coming years. It has reasonable debt levels, good profit margins, a somewhat high valuation (31.3X forward P/E), but it generates good free cash flows and has been reducing some of its debt recently. Growth rates are good, and we think as part of a long-term hold, it is a solid name, although it has seen a strong run recently and we might expect a slight pullback.
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She likes materials as a sector because they have one of the highest earnings projections for next year and this company has a lot of highway projects where the government is spending a lot of money and it could go two or three years out. (Analysts’ target: $141.50).

A very well run company with quarries around San Antonio. When prices fell, they used technology to reduce production. They will do exceptionally well.