Builders FirstSource (BLDR) is presenting an opportunity to buy a dollar for 50 cents. Even after a huge rally in the share price since 2011, I estimate that it has over 2x upside potential to its mid-cycle intrinsic value. Builders FirstSource is a small-cap company that manufactures structural building products for residential new construction. It is an under-the-radar play on the housing recovery. I recently purchased shares as the stock declined 18% from its 52-week highs on concerns about rising mortgage rates and the pace of the housing recovery. In this article, I will explain my investment thesis and the company's upside potential.
A brief overview of the company:
"Headquartered in Dallas, Texas, Builders FirstSource is ...
Only subscribers can access this article, which is part of the PRO research library covering 3,602 different stocks.
Growing numbers of fund managers and other investment professionals subscribe to Seeking Alpha PRO for equity research that is unavailable elsewhere, so they can: