Insteel Industries, Inc. (NASDAQ:IIIN)

facwinjeff42 (< 20) Submitted: 8/1/2010 8:19:32 AM : Start Price: $9.25 IIIN Score: -14.29

Insteel Industries is lookin' a little putrid right now, but it gives me several good feelings as a long-term investment:
(Note: This is an excerpt. View the full extended blog:
http://caps.fool.com/Blogs/mold-to-marble-getting-iiin/427774)

1) IIIN IS BORING. Fantastic attribute. Let's sample the good: One of Insteel's three core strategies is "operating as the lowest cost producer" of steel wire reinforcing products for concrete construction applications. See the photo above. The put steel inside concrete and make important stuff work. I'm already excited.

2) NO DEBT. Insteel made a massive payment in 2009 to clear long-term debt. Now the cash flow is even more sweet and tantalizing. There's a solid history of profiting while limiting liability and expeditiously paying off debt. Going forward, IIIN should be well-fortified to withstand any bad surprises and continue to grow.

3) WORLD DOMINATION. They're doing what they said they'd do, by executing on their other two core strategies: achieving leadership positions in their markets and expanding their geographic footprint. Combine that with fiscal responsibility, and there's potential.

4) SECTOR IS DEPRESSED. At $9.29, IIIN is within $0.08 of its 52-week low. Construction is weak, of course, pending general economic recovery. When the pendulum swings back up, as it always does eventually, business will boom. It has to, because...

5) DEMAND IS ENDLESS. They make stuff that will need to be used by lots of big companies for the forseeable long-term future. If you like, there's a really boring sentence from Insteel's website that gives perspective: Insteel makes prestressed "concrete strand" and welded wire reinforcement, including concrete pipe reinforcement, engineered structural mesh and standard welded wire reinforcement. Their products are sold primarily to manufacturers of concrete products that are used in nonresidential construction.

There are downsides, sure. This pitch is not perfect; it's just a quick five-point lovefest, apparently. But I'm not talkin' quick bang-boom explosion here. This is a sit-and-ride. Hop on and watch the scenery slowly beautify.

NOW, these are just one person's thoughts. There are points and angles I haven't considered and things I've missed, I'm sure. I'm no expert. I could be totally wrong about this. But I'd be happy to read anyone's thoughts, even if filled with contempt for my ignorance. Please comment on the original blog post:
http://caps.fool.com/Blogs/mold-to-marble-getting-iiin/427774

Thanks for reading!