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...

Join Seeking Alpha PRO to read this archived article and 11,574 other archived articles
WITH SEEKING ALPHA PRO, INVESTORS CAN ALSO:
  • Access Top Ideas, chosen by Seeking Alpha’s editors
  • Filter long and short ideas by market cap and sector
  • Get Coverage of over 5,000 stocks, many of which have little or no coverage elsewhere
"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
100% Satisfaction Guaranteed
Money back guarantee. Seeking Alpha PRO members receive a no-questions-asked refund for membership on months paid and not used. Details