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$22.65 -0.47 (-2.03%)
7/3/2008 1:03 PM

Simpson Manufacturing Co, Inc. (SSD)

CAPS Rating:
****

The Company through its subsidiary designs, engineers and a manufacturer of wood-to-wood, wood-to-concrete, wood-to-masonry connectors, SST Quik Drive screw fastening systems and collated screws, and pre-fabricated shearwalls.

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Avatar slbutton (99.86) Submitted: 3/05/08 11:39 AM : Outperform Start Price: $26.28 SSD Score: 0.31

I think the whole housing mess is likely to get worse before it gets better. That said, I'll be looking to pick up a few outstanding companies on the cheap while they're suffering in the short term: USG, Fastenal, and Simpson. Simpson's connectors are used in all kinds of construction and remodeling--not just new residential construction--and in some areas are virtually mandated by code. It's has a great niche business with a moat and it returns value to shareholders in the form of a regular and growing dividend.

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Avatar kurtdabear (99.24) Submitted: 4/24/08 2:13 PM

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Simpson is a good company. I've followed them on and off since working on their IPO roughly 20 years ago. Still, I'm shorting them at the moment because of the housing and sub-prime crisis. Americans are broke, and even remodeling takes money. With home equity loans and lines of credit being capped, called and canceled, updating and remodeling will soon go the way of new home construction. SSD will survive and some day will again prosper, but I see it on a downhill slide that will make it a better bargain a few years down the road. The full impact hasn't hit them yet because homebuilders this year were still finishing up half-built units to try to sell them off to at least recover costs. This spring, that phenomenon will no longer exist, as witnessed by the large recent increases in unemployment in building trades.

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