U.S. Home Systems, Inc. (NASDAQ:USHS)

CAPS Rating: 3 out of 5

Engaged in two lines of business, the home improvement business and the consumer finance business. In its home improvement business, it manufactures, designs, sells and installs custom quality, specialty home improvement products for The Home Depot.

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Player Avatar piggy60 (< 20) Submitted: 2/1/2012 2:38:27 PM : Outperform Start Price: $8.82 USHS Score: +5.73

I bought this stock a year ago when everything housing was aweful. Since then, I'm up 137%. While I was cautiously optimistic, I have found that sometimes the best investing strategy is simply a "gut" feeling. Great management, little debt, a solid relationship with The Home Depot, and people who are staying in their houses. It all signalled a boom, and that gut feeling, well, the angels were with me. You have to believe in the product the company makes. Of course, any marital problems with THD, or any problems with THD, and I'm out. But for now, I see positive growth. Housing is showing a flicker of life, and as people scoop up trashed out foreclosures, they will need these types of products. Over the next 5 years, I don't see housing booming, but I do see the foreclosure market beginng to dry up. It will take 5-7 years of moderate, but steady growth to clean up the mess, and that's fine with me. 2011 was the worst year on record for home sales, and these guys were up over 100%. Imagine what they will do with an economy that grows at 3, 4, 5 or even 6%. It's coming, so tiedown the bootstraps and hold on for a wonderful ride to $30+.

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