Stephen Simpson, CFA
Long only, growth at reasonable price, value, research analyst

Headwaters Still Building For The Housing Recovery

The Street may have seen some of its enthusiasm for housing-related names fade around mid-year of 2013, but Headwaters (NYSE:HW) management continues to build up its operations to take advantage of what management believes can be a solid long-term opportunity. Better still, Headwaters' recent financial performance relative to other companies exposed to residential construction and remodeling (names like Ply Gem (NYSE:PGEM) and RPM International (NYSE:RPM)) has been pretty good.

Although I wish Headwaters would use less debt to fuel its growth ambitions, I can't deny that the end result could be some very significant growth if or when the housing market really gets moving again. Cash flow-based modeling for these housing/remodeling plays still demands...

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