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Pure Play US Residential Housing Stock - Masonite (World's Largest Door Manufacturer)

|Includes: Masonite International Corporation (DOOR), MASZF, MAZSF

I came across this stock a few weeks ago. They just filed their S1 and are going to be going public. The company is called Masonite, one of the largest (if not the largest) door manufacturer in the United States.

Apparently only one other competitor here, Jeld Wen, which is owned by Onex.

Did some digging, and it looks like Masonite used to be a public company pre 2005, was taken private by KKR for over $3bn.

The stock actually trades over the counter under the ticker MASWF. The Company filed an S1 and is probably going public this summer, and if this follows other housing names like USG, LPX, Realogy the stock could rip and roar.

They have a presentation on their website which shows the Company could do $300mm of EBITDA at 1.2mm housing starts, and every dollar of price is another $30mm of EBITDA. So that means maybe around $350 - 375mm of EBITDA, that means stock is trading at 4 - 4.5x EBITDA, really cheap versus its comps.

Looks like we have a window to buy this OTC before it goes public. There are also some warrants, one expiring 2014 and the other 2016 (MASZF and MAZSF). Seems like a fun way to get leveraged exposure!