Insteel Industries, Inc. (NASDAQ:IIIN)
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The Company manufacturers steel wire reinforcing products for concrete construction applications.
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The Company manufacturers steel wire reinforcing products for concrete construction applications.
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Insteel Industries financials are excellent but since it's linked to the housing market it will wallow in the mud like the rest of the housing stocks.
However... most of its sales go to non-residential and public transportation constuction projects.
Very little of its sales are linked to household construction. On the contrary, most of their sales are related to infrastructure (pipe reinforcement, bridges, parking decks, highway, commercial construction, etc). How many of these projects do you see going up everywhere? I suggest you take another look at their annual report as I think their products and market position are one of their main strengths rather than a weakness. You are right that it is perceived as such but, as people learn what they truly do, their results should show they aren't affected much by the housing issue.
The unfortunate event of the latest bridge collapse has congress scrambling to fund highway projects and that is iiin's cash cow! Capital spending by gov't, industry and business is in bricks and mortar (and wire reinforcing is a major component). So come on, what part of the financials were you looking at? IMO IIIN should command a 20 trailing PE and that translates to around $30 sh mkt. Low float, excellent management with agessive sales force, and what almost is assured increase in demand for product make this attractive. And the technicals are looking real good at moment. This horse may do well on a muddy track.