Alpha Capture
Long only, long/short equity, value

It's Time To Bet The House On Stock Building Supply

Stock Building Supply Holdings (STCK) represents an undervalued and attractive way to play the ongoing recovery in single-family housing, which we expect will drive a material recovery in profits. We believe that strong end market growth, coupled with opportunities to gain market share via value-added products and services initiatives, should allow the company growth revenue at an accelerated pace over the next 2-3 years. With shares trading at a depressed 5.1X our 2015E EV/EBIT multiple vs. 7.5x for building products companies and double-digit multiples for other housing-levered suppliers and retailers, we see upside of 45-100% over the next twelve-months as investors begin to appreciate the merits of STCK and confidence in the housing recovery builds.

STCK is a leading regional...

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