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Tecnoglass: Still Bullish As Blowout Earnings Support Large Rally

Apr. 10, 2021 9:10 PM ETTecnoglass Inc. (TGLS)27 Comments


  • Window and glass producer Tecnoglass is up 90% year-to-date and 315% over the past 12 months.
  • Normally, I'd be inclined to take profits after such a run.
  • However, Tecnoglass is worth holding on to even after its gains.
  • The company's latest earnings report was jaw-dropping. Beyond the housing boom, the company is making progress on other fronts as well.
  • Looking for more investing ideas like this one? Get them exclusively at Ian's Insider Corner. Learn More »

monolithic glass

Tecnoglass' insulating laminated glass at the Norwegian Cruise Terminal B; Miami, Florida. Source: Corporate website.

Tecnoglass (NYSE:TGLS) had been one of my bigger annoyances in recent years. The company's management bungled a great situation back in 2016, and the former SPAC, which debuted at $10, traded well under that mark for most of the past five years.

While my initial recommendation of the stock years ago was early and wrong, I came back at it for a second swing last fall. This time things went more favorably, as shares are up 150% since publication of that article:

Data by YCharts

Back in October, it was a pretty simple analysis: Management has been doing a better job lately. Meanwhile, the housing market is so hot that it'd be hard to mess up the current situation, even with the company's hit-or-miss reputation historically. Tecnoglass, for those unfamiliar, primarily sells windows for houses, multifamily apartments, and commercial real estate.

Thus, I was bullish on the company as it had a good chance of delivering blowout earnings, meanwhile expectations were modest. Anyway, that's exactly what played out. Tecnoglass reported Q4 and full-year 2020 results a month ago, and they were just about perfect.

The company put up 79 cents of earnings for full-year 2020 which is their best number so far as a public company.

They managed that even with some sales getting lost in the early part of the pandemic. The company did shut down its production for a month due to Covid, among other challenges.

For Q4, it earned 39 cents profit in that three-month period alone. Annualized, that'd be more than $1.50 share in EPS on a $13 stock.

Going forward, they likely won't earn quite that much. There were some unusual gains in those earnings, as things such as currency won't always move

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This article was written by

Ian Bezek profile picture
Research and trade alerts from a hedge fund pro with a global outlook.

Ian worked for Kerrisdale, a New York activist hedge fund, for three years, before moving to Latin America to pursue entrepreneurial opportunities there. His Ian's Insider Corner service provides live chat, model portfolios, full access and updates to his "IMF" portfolio, along with a weekly newsletter which expands on these topics.

Analyst’s Disclosure: I am/we are long TGLS. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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