Naomi Lazarus
Long/short equity, deep value, growth at reasonable price, long-term horizon

Encore Wire: A Good Addition To An Investment Portfolio

In the diversified machinery industry, especially the electrical equipment segment, Encore Wire Corporation (NASDAQ:WIRE), currently trading at $36.55, has made a name for itself as it offers one-stop sourcing for every residential and commercial wire needs of its numerous customers. Operating in a cyclical and highly competitive industry, the company is bound to experience a certain level of volatility as far as margins and earnings are concerned. However, I believe it is a strong choice if as an investor you understand the intricacies of cyclical companies.

(click to enlarge)

Source: finance.yahoo

A little knowledge of the company

Encore Wire Corporation was incorporated in 1989 as an electrical building wire and cable manufacturer. It supplies building wire for interior...

Join Seeking Alpha PRO to read this archived article and 11,574 other archived articles
FREESA PRO MEMBERS
IDEA GENERATORXExclusive access to 10 PRO ideas every day
INVESTING IDEAS LIBRARYXExclusive access to PRO library of more than 15,000 ideas
SECTOR EXPERT NETWORKXExclusive access to all sector experts for direct consultation
PERFORMANCE TRACKINGXTrack performance of all PRO stock ideas
PROFESSIONAL TOOLSXProfessional Idea Filters to zero-in based on industry, market cap and more
"In just the first month of using PRO, I used it to generate two ideas which were actionable for me. As a result of these two positions, I have earned more than 20 times the annual subscription costs for PRO."Michael Yagemann, Greenbridge Capital
"I am pleasantly surprised with the scope of small and mid-cap coverage PRO offers. You can't find that any where else."Patrick Rice, Mainstay Capital Management
You may cancel at any time for any reason, and receive a prompt refund for membership on months paid and not used (max. 6 months). Details