Alpha Capture
Long only, long/short equity, value

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

Stock Building Supply Holdings (NASDAQ: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...

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