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

A Remodeling Recovery Has Sent Universal Forest To Multi-Year Highs

The residential and commercial construction markets still have a long way to go before they can be called "healthy", but Universal Forest Products (NASDAQ: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 with...

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