Simpson Manufacturing Co, Inc. (NYSE:SSD)

Housing comeback, niche supplier

I fancy building something!!

Going back for more.
See my September 2010 blog:
http://caps.fool.com/Blogs/september-2010-simpson/441509

Slow housing starts in the US and the ease that the product can be knocked off overseas. Its not the special of a nitch product.

This is one of my STARZ.
Here is the thought process on this STAR:
a) Divided rate over Zero
b) 3 Year Beta between -5 & +3
c) 15% + Insider ownership
d) No greater than -50% Growth rate for the last 3 years (tough last couple of years so good that insiders are still owning the stocks)
e) Current CAPS rating between 3 Stars & 5 Stars
Open to all Industries and Sectors screened this down to just 250 stocks. I like round numbers. 12 of them I already own through other screening tools. I tend to be somewhat conservative but looking for 3 things at this point in my investing:
1. Stability & Strength
2. Yield and Modest Growth
3. Strong Position within a sector regardless of whether the
entire sector is strong or not. Each sector has to perform to some degree for the whole world economy to function. I am looking for 5 or more years down the road, ROI, and Growth. Not looking for rockets, just stars. This is a Star!!

Don't believe the housing market is getting ready to take off for a long time.
Situation is China seems to uncertain to rely on them for profitability.

SSD? I'm down 23.81% on short term. Real timely pick Tom.

Part of xhb

An eventual end to the recession, and an eventual return of construction and housing markets (I am starting to sound like a broken record) should be nothing but good news for this company.

Looks like a wonderful, long-term holding. An almost impenetrable moat (in some states you not only have to buy the products SSD manufactures, you actually have to buy SSD's products); huge insider ownership; plenty of spare cash and no debt. Top all that with a long-term focus from management and although the housing market isn't likely to recover quickly I feel comfortable buying this stock now in the knowledge that when the market does recover SSD will be one of the best-placed to take advantage. SSD probably won't make anyone wealthy overnight (from this starting point), but if you're patient I think they will do well in the long run.

I feel that the housing market is far too unstable right now. I am also uncomfortable with the fact that if something were to happen to the 88 year old visionary, the company could go 180 degrees in a different direction without the captain there to guide the ship.

akre

Cyclical action in an uncertain market in an adverse environment.

Simpson Strong-ties are an industry standard. They are specified in the building of MOST wood structures. If there is business to be had, then they are getting it.

A near total monopoly with its product line.

Expanding into Europe.

Still run by Barclay Simpson.

New "hot" products

More stringent building codes requiring more hardware.

No debt.

Dropping steel prices increase proffit.

No debt, trading just above book value.

I'll agree with the Fool--great company, but overvalued after it didn't tank with the rest of the market.

Until we are out of this bear cycle, I can only give this stock...and many others...a few weeks of outperform, not much more.

I have a soft spot in my heart for this company. Always a good track record. Weathers any storm. Solid management.