American Woodmark Corp (NASDAQ:AMWD)

CAPS Rating: 2 out of 5

The Company manufactures and distributes kitchen cabinets and vanities for the remodeling and new home construction markets.

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Player Avatar AppleCity (< 20) Submitted: 6/16/2007 8:26:18 PM : Underperform Start Price: $32.83 AMWD Score: +40.63

American Woodmark is one of the major suppliers of kitchen cabinets to both Lowe's and Home Depot. With both of these stores having lower sales and margins, pressure will be put on companies like AMWD and Kraftmaid to be more competitive in sales. AMWD has been increasing its use of imported products like drawers and hardware to keep pace in this market. Import cabinet companies with assembly in the US will cause more competition from abroad. This double edge sword will cause this stock to under-perform in the next few years.

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