Eagle Materials, Inc. (NYSE:EXP)

stockpickr 5 insider accumulation.

12/10

Yeah, I picked this at a bad time. Still beating Buffet's choice by 35% 4 years later. Too bad my all times returns aren't 35% higher than his.

Housing is tanking because of rising unemployment. Plus the stock is overbought on misguided speculation that someone might acquire the company for $27. The fact is none of the major manufactures needs excess capacity at that price when they can just reopen a shut down plant. Finally EXP is about to show their first losses on this 6/30/10 quarter and these losses will increase quartely through out the rest of 2010.
By Feb 2010 this stock will be in the $15 range. (if Not sooner)

Good growth and earnings.

With the housing market at a bottom and the Obama stimulus in place, this company should see accelerated earnings. The sector will catch attention from professional investors and this company should accelerate and be one of the top performing stocks in the sector.

Cheap stock, bottomed out technically at 35

1. Simple business model, 2. Has economic moat by being the lowest-cost provider in each of its market segments (you can see this by comparing ROE, ROA, net margin and cash flows against its competitors). Constantly renews its factories and builds new ones to keep this moat, 3. Financially healthy, which cannot be said from all its competitors, 4. Only its biggest segment, gypsum wallboard, is really affected on the home building recession. Oversupply of wallboard is decreasing the prices, but EXP has advantage against its competitors because of its lowest cost leadership and healthy financial situation, 5. The other segments show still small growth and constantly improving operating margins, 6.
Fair value estimate 2,660 million$ (my earnings estimate this year 190 million$ with P/E valuation of 14, which is industry standard and also near EXP average over past years) so the current discount is 33%

Back again!!!

Pros: History of earnings tgrowth >15%, sales growth is good, price to book growth, company buying back shares Low P/ E, insider's buying.

Cons: The housing industry has fallen on hard times and basic building materials companies are getting killed. I love negativing in an industry when purchasing a long term stock.

When the housing market eventually turns around this stock will go up with it.

nice P/E. Should go up with the housing market. :| i hope

Soild financials. Significant recent expansion of gypsum board business. Significant slated expansion of their cement business (see 2006 Annual Report)
DCF Analysis of company shows fair/undervalued valuation.

Solid fundamentals, insider buying, looks like it may be breaking out of a trading range.

This building supplier is suffering from the slowdown in the residential market. It will recover quickly when the housing market improves.

cocrete shortage

I feel good on this one

High CAPS rating, low performance.

I think Eagle gets bought. There is a lot of private equity floating around and with the Vulcan deal it appears that this sector could be ripe.