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

Insteel Looking At Several Ways To Build Share Value

As non-residential construction recovery plays go, Insteel Industries (NASDAQ:IIIN) hasn't done too bad since I last wrote about the stock, with returns about halfway between other plays like cement maker Cemex (NYSE:CX) and Nucor (NYSE:NUE). Looking ahead, residential construction is picking up from low levels and commercial construction activity does seem to be improving. With employment and tax revenue improving in many states, the outlook for infrastructure spending is also getting better. Add to that the possibility of Insteel's welded wire reinforcement (or WWR) products gaining share from rebar and the company's capacity/margin leverage potential, and there's still a bullish argument to make here.

Spending Improving, With Room To Grow

I'd encourage readers interested...

Join Seeking Alpha PRO to read this archived article and 11,574 other archived articles
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