North Fork Investors

WSP Holdings: A Favorable Risk / Reward Opportunity

While we see the acquisition as a positive move for the company, we don’t necessarily see it as a decision to improve margins. We see it as a decision to begin to vertically integrate and control supply of raw materials to the company. This should eventually help control margins and increase sales and market share as they will be able to better control production capacity. Even with today’s 25+% pop we continue to see value and hold at the current price. This is a profitable, growing company that is still selling below its IPO price. If you have a chance, check out our full blog, performance results, as well as other holdings and picks at northforkinvestors.com.