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$16.20 1.80 (12.50%)
10/10/2008 4:00 PM

Encore Wire Corp (WIRE)

CAPS Rating:
****

Low-cost manufacturer of copper electrical building wire and cable. It supplies residential wire for interior wiring in homes, apartments and manufactured housing, and commercial wire for electrical distribution in commercial and industrial buildings.

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Avatar HautMedoc (21.00) Submitted: 8/31/06 9:16 PM : Outperform Start Price: $33.28 WIRE Score: -21.84

Encore Wire as a number one low cost producer of copper wires for residental and commercial buildings, proved itself very competitive when copper price was low and very profitable when copper price is high. Recent transition from legendary founder to current CEO was smooth. Copper price staying high and very low PE of 7 indicates today stock price of $34 still cheap. The only problem is the company invest too much into AR and inventory resulting no free cash flow even earning is all time high.

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Avatar TLEULENSPIGELS (87.82) Submitted: 11/20/06 2:50 PM

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I bought Encore Wire shortly before Catrina. In a brief time the price of Encore had trippled. Then it slowly cut my profit in half .I attribute the drop in price to the fact that the main damage by catrina was under control. That and the fact that housing construction in the U.S is slowing could account for the excess in inventory.I feel that this type of company needs to carry a large inventory. I am talking about finished inventory as opposed to inventory that must be assembled before shipping.

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