Universal Forest Products, Inc. (NASDAQ:UFPI)
CAPS Rating:
The Company engineers, manufactures, treats, distributes and installs lumber, composite wood, plastic and other building products to the do-it-yourself/retail, site-built construction, manufactured housing and industrial markets.
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My 10 Stocks for 2007
By James K. Glassman
Kiplinger's Personal Finance
Now, here's a contrarian stock. Universal Forest Products (UFPI) makes wood and plastic building products, such as roof trusses, for the construction and do-it-yourself sectors. With the decline in the housing market, the stock skidded 40% between May and December. It is, however, a selection of one of my favorite analysts, Cleveland-based Elliott Schlang, of Great Lakes Review, who focuses on midwestern stocks in boring industries. He likes companies with heavy insider ownership, strong cash flow and solid balance sheets. Universal meets the criteria and, trading at a P/E of 12 based on estimated 2007 earnings, it looks awfully cheap. That's the list. Just remember warning number three.