Houston Wire & Cable Impresses Easily

| About: Houston Wire (HWCC)

Houston Wire & Cable Company (NASDAQ:HWCC), formerly known as HWC Holding Corporation, through its wholly owned subsidiaries, HWC Wire & Cable Company, Advantage Wire & Cable and Cable Management Services Inc., distributes specialty electrical wire and cable to the United States electrical distribution market through 11 locations in 10 states throughout the United States. The Company offers products in most categories of specialty wire and cable, including continuous and interlocked armor cable; control and power cable; electronic wire and cable; flexible and portable cords; instrumentation and thermocouple cable; lead and high temperature cable; medium voltage cable, and premise and category wire and cable. HWC also offers private branded products, including its LifeGuard low-smoke, zero-halogen cable. On March 23, 2006, the Company changed its name to Houston Wire & Cable Company and its operating subsidiary, Houston Wire & Cable Company, changed its name to HWC Wire & Cable Company. -Google Finance

With tremendous earnings growth (.01/share in '03, .23 in '04, .60 in '05 and 1.47 last year), it's easy to be impressed with Houston Wireless. Throw in large management ownership (50%), many new institutions initiating positions, ROE off the charts and it has all the characteristics of a big time winner. If there are a couple minor negatives, it's the net margin which is "just" a respectable 10% and earnings growth estimates for '07 which is expected to slow considerably over last year. Not too surprising after the torrid growth of the past few years.

TECHNICAL: Technically, the quality doesn't deviate. After breaking out of a base in mid February, the stock has been bouncing along the 50 day moving average and ultimately carving out what is now a bullish triangle pattern from which it looks ready to emerge with gusto.


Full Disclosure: Author has no position in Houston Wireless & Cable (HWCC) at time of writing.