The residential and commercial construction markets still have a long way to go before they can be called "healthy", but Universal Forest Products (UFPI) is already well ahead of the curve. With strong unit growth and improved margins in the third quarter, growing expectations, and strong margin leverage to a construction recovery, I can understand the enthusiasm for this wood products company.
Although I understand, I'm not looking to join in with my own cash. Trying to forecast the pace and magnitude of residential and commercial construction recoveries is just asking to be wrong, and I won't argue with more momentum-oriented investors who look at this as a directional play on construction activity. I try to invest...
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