rock boy

Here's Hoping For a U.S. Concrete, Inc. Buyout

Now RMIX looks really interesting after last night's pre-announcement. The stock is now trading at about 6x 2007 depressed EBITDA that I figure is in the low $80's. That is a valuation I can get very excited about. With any stabilization in housing, EBITDA goes back into the mid $90s, the multiple goes back to 7-7.5x and the stock is a $9-10 stock a year from now. You may get their sooner if there is a buyout though I think that is less likely given the current credit markets. Even without multiple expansion you get back to $8 from $5.25 today.