Balanced Investing
Growth at reasonable price, mutual fund analyst

Texas Industries: Investor's Optimism About Industry Has Led To A Valuation Disconnect

The cement industry witnessed a significant decline during the recession of fiscal year 2008-09. Most of the companies recorded losses during the recessionary period but as the recovery started, industry performance improved significantly. However, Texas Industries Inc. (NYSE:TXI) could not revive itself along with the pace of the industry despite the economic recovery. The cement industry is expected to experience decent growth in the near term; however, I believe that Texas Industries won't be able to capitalize and reflect this growth in its margins because of its weak future prospects. I believe that investing in the company would result in a negative return of approximately 25.87 percent. Therefore, I would recommend that investors take a short position in...

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