Trex Company, Inc. (NYSE:TREX)

This is a CAPScall form a recent blog that I wrote:

http://beta.fool.com/brewcrewfool/2013/04/17/these-small-caps-will-profit-from-the-housing-reco/31466/

People like the extra living space of a good looking deck or porch.

Improving trend in real estate will help this stock.

Boomers are fixing up their homes and downsizing.

http://www.fool.com/investing/general/2012/12/06/trex-sketches-me-out-every-time.aspx

This stock (which I used to own) has been hammered by the economic downturn, for sure. It was in fact a disappointment when I held it, and I've been out of it for a few years. It's made something of a comeback, and I think it's poised for a nice rebound along with the inevitable recovery of the housing market.

institutional ownership already seems a bit high for such a small company. as the commercial real estate mess unravels further in 2009 & as economic recovery in real terms appears to be further & further into the future, this stock is likely to see volatile movements on the downside.

Home projects are down, decks won't add value for awhile.

i hope it aint to late

Short Squeeze. This was at 7.50 during the time of the release of a grim 4Q and has only gone up since then. Get your money in now, because it's only inevitable that this stock go down with the continued housing market slump.

T-rex has been hit a macroeconomic and bad management meteor.

When people can't sell their homes and are pinched by high oil and high food prices, they aren't going to be too inclined to drop a boatload of money on home improvement projects. Recent studies have shown that the return on your home improvement projects is the lowest it's been in decades (it was recently around 90 cents on the dollar now it's about 70 cents). This is very bad news for T-rex as they make wood/plastic composite decking and railing materials, which by many is undoubtedly viewed as luxury item. They essentially have no customers in an environment like this and it shows in their declining sales.

T-rex however was struggling before the housing went to pot and it really shows now. Their financials are absolutely awful.

Return on Assets (TTM) -23.10

long term debt to equity 1.40

long term debt of 131.73 million (a nearly 160% increase over thr prior year)

Price to free cash flow -4.50

Cash and Cash equivalents 0.07

and last but not least a

Quick ratio of 0.10

T-Rex is in real danger of going extinct. Stay away from this dieing Dino.

TANKORAMA

VALUE LINES - WORST PERFORMING STOCKS 13 WEEKS

Going in to the final month..With an intrest rate cut just days away..This stock with other building stock should make a jump...

Plastic lumber looks crappy and is too expensive, I wish I would have shorted this stock 2 years ago, but it will go down more

still a good product even if new housing is slowing...

HOUSING INDUSTRY .....NEGATIVE

HOME IMPROVEMENT MKT....... POSITIVE

GREAT PRODUCT BUT, 60x EARNINGS?

IF FWD EPS GROWTH NOT CONSISTENTLY25% OR MORE.....WAY OVERVALUED

TWP I liked it for quite a while but pending lawsuits cast a shadow. "Iffy" at best.

Seem to have gotten beyond their manufacturing issues brought on by an aggressive attempt to bring on several new products simultaneously. If they can start to click operationally, TWP are well positioned in a field that should continue to expand as homeowners opt for the lower maintanence deck materials over wood. Future expansion into fencing could bring additional potential.