Houston Wire & Cable Company (HWCC)

Like it's prospects.

A recession recovery and infrastructure play. HWCC is consistently profitable and is growing at a 19% annual rate. Very good margins at about 22% and the industry leader. Low debt at a 0.25 debt to equity and paying a 3% dividend.

This is an infrastructure business and my prediction is that there are wires and cables throughout this country that do not meet the new standards of recently installed and to-be-installed new grid policy as the foundation of enery distribtion is brought on in our economy. There is a trackrecord of time in the industry and the same motivators and/or motivators have a stake in the company. Costly infastructure improvements with not be decided overnight, but these companies realize that they want to particpate when the surge comes - and it will come.

Runs-with-bulls

Increased need for better wiring throughout the country.

Should benefit from large-scale infrastructure projects even if the rest of the economy doesn't rebound immediately.

TMFRedWood - Couldn't agree more with the write up. Thanks for bringing this to my attention via your report.

Good little company at a good price.

Value play. Materials seem to be recovering.

My target for Houston Wire & Ca is 19.45. I used my new method for determining a fair P/E (based on G and K). The growth factor was extracted from the PEG found on the web. K was 10%. I hope it works!

Low PE, good products

TMFBreakerWade

I've been watching this one for awhile. HWCC acts as a middleman providing specialty wire to electrical customers. The company also offers privately branded products. I believe this to be a boring yet predicatable business, the perfect compliment to some of the other stuff in my Caps portfolio. I value HWCC at around $28 per share yielding a near 40% safety net. Recent weakness in the stock has made a good buy that much better.

5 Star, Small- Cap, dividend paying company

Undervalued relative to future earnings.

Return on Equity (TTM)
>= 15
Market Capitalization
250000000 - 1000000000
Rev. Growth Rate (last 3 Yrs)
>= 20
Outperform Picks
>= 50
All-Star Outperform Picks
>= 50
EPS Growth Rate (last 3 Yrs)
>= 20
Price-to-Earnings (TTM)
7 - 20
CAPS Rating
5 - 5 on 2008-05-29

SIMPLY UNDERVALUED

Houston Wire & Cable Co has show a strong sales growth over the last 6 months. Should out perform for the next couple of weeks.

Testing out a portfolio of smallish-cap 5-star stocks found using the CAPS screener. All picks have at least 50 allstars backing them, which should be enough to minimize star rating fluctuations. It's only been about a week, and I expect a LOT of volatility, but I have high hopes for market beating performance. Time will tell...

somewhat of a bottom fishing stock... these shares will reach their previous $30 range as the market continues to rebound (may still be a little ways off)
still at a great value, with a company of proven steady growth in their industry... p/e: 11!!!