Simpson Manufacturing Co, Inc. (NYSE:SSD)
The Company through its subsidiary designs, engineers and a manufacturer of wood-to-wood, wood-to-concrete, wood-to-masonry connectors, SST Quik Drive screw fastening systems and collated screws, and pre-fabricated shearwalls.
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Recs
Along term winner due to excellent planning and management. I'm hanging in and building with confidence. They may weaken but they bounce back.
Recs
SSD is a very profitable company, that has been beaten down along with all the housing related stocks, but the products that it manufactures are written in to the building codes. All residential and light commercial engineers specify Simpson products exclusively to comply with the building codes, that is a significant hurdle to overcome for any other firms, trying to muscle in.
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Simpsons ties are available in both HD and Lowe's. They don't carry any other brands. Play on monopoly of this company.
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It's cheap right now.
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Incredibly well-run business with good management in a bad sector. Their diversification through various building markets will limit their exposure to a residential blow-up.
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Taking a beating recently to very low levels. Too many people think SSD is directly related to housing starts, but it is not true. Lots of growth potential in Europe and with masonry anchor systems in US as codes get stricter
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Having recently built a new house I found that SSD has a virutal monopoly on structural tie downs (Can you imagine the use in Katrina Land)
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SSD is a strong company with nearly no debt and an excellent position in its markets. Designers and contractors alike respect them. They are, however, very sensitive to housing and are likely to be volatile in the short term.
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This company has no competitor in its market (connectors used in construction); it continuously innovates and invests in R&D; it has a clean balance sheet; high inside ownership.
Recs
The current out-of-favor housing market dragged this well-run company's stock price down, given a good safety margen for the long term.
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