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($$$MR. MARKET$$$ is a proprietary investor and does not provide individual financial advice. The stocks mentioned on this forum do not represent individual buy or sell recommendations and should not be viewed as such. Individual investors should consider speaking with a professional investment adviser before making any investment decisions.)
You know sometimes when you’re in a meeting and think you have a good idea and you’re being ignored? The best thing to do is, raise your hand and say “What am I, wood?”. Actually, today is a great day to be wood. Housing starts were just reported as 1.56 million vs. an estimated 1.36 million. People want to buy but no one is selling. What’s the answer? Build more houses. How do you build more houses? You need wood.
Yesterday I bought Boise Cascade Company (ticker BCC) at 118.40. I will sell it in 4 to 6 weeks at 135.76. Here’s why I love BCC:
First of all, look at this amazing chart. This company’s stock price is on a rampage because of the need for more wood.
The stock price is up 66% in the last 12 months but its PE is only 9.4. It has great growth potential and yet it is trading at a great value. I like it for both reasons.
Boise Cascade Co. engages in the manufacture and distribution of engineered wood products (EWP) and plywood. It operates through the Wood Products and Building Materials Distribution (BMD) segments. The Wood Products segment manufactures and sells engineered wood products, plywood, particleboard, studs and ponderosa pine lumber. The Building Materials Distribution segment distributes and sells broad line of building materials, including engineered wood products, oriented strand board, plywood, lumber, and general line items such as siding, metal products, insulation, roofing, and composite decking. The company was founded on October 29, 2004 and is headquartered in Boise, ID.
Yes, Boise Idaho is more than just potatoes. Who else remembers the 2007 Fiesta Bowl when Boise State ran the Statue of Liberty play to beat Oklahoma? Never mind all that. How about all the money I’m going to make by owning this stock.
There is a lot of support for the floor of this stock price, particularly the aforementioned low housing inventory. Even though this is a great long term value investment, combine this fact with rising GDP growth and the possibility of relaxation of interest rates and this company stock could explode in the short term. The fact that the company is nurturing its dividend and has deployed a share repurchase program indicates that management’s outlook is very bullish. In fact, the company announced a special dividend of $5/share to be paid out this year. Backing that belief, the sales of new single family houses increased by 20% through the 3rd quarter of this year. The “soft landing” may actually happen without the huge recession even materializing.
BCC reported its Q3 earnings of $3.58 per share on 10/30/2023, a positive surprise over ANAL-yst projections of $3.43 per share. The outlook, according to the company, is great:
“Demand for the products we manufacture, as well as the products we purchase and distribute, is correlated with new residential construction, residential repair-and-remodeling activity and light commercial construction. Various industry forecasts for 2023 U.S. housing starts are estimated to be 1.4 million units, compared with actual housing starts of 1.55 million in 2022, as reported by the U.S. Census Bureau. Throughout 2023, home affordability has been a challenge for consumers given higher mortgage rates and limited home price decreases. However, given a resilient economy and low levels of existing home inventory for sale, demand for new residential construction has been stronger than anticipated.”
“The strength and flexibility of our balance sheet allows us to remain committed to our reinvestment and growth strategies while also rewarding our shareholders, as evidenced by our most recent special dividend announcement. As we look forward to 2024, we are dedicated to supporting our vendor and customer partners and appreciate their ongoing confidence and trust in us. We are well positioned to navigate market uncertainties as near-term demand for new residential construction evolves.”
Look, it’s all about the value here. This stock is cheap and the outlook for growth is very favorable. The downside risk is tiny, which means that there is money to be made.
In other words, you don’t have to knock on wood to make money on BCC. I’ll be carrying my 2X4 to the bank, raising my thumb and yell “Hooooo!” just like Hacksaw Jim Duggan as the teller gives me monies.
I am HUGE!
$$$MR. MARKET$$$
www.mrmarketishuge.com
You know sometimes when you’re in a meeting and think you have a good idea and you’re being ignored? The best thing to do is, raise your hand and say “What am I, wood?”. Actually, today is a great day to be wood. Housing starts were just reported as 1.56 million vs. an estimated 1.36 million. People want to buy but no one is selling. What’s the answer? Build more houses. How do you build more houses? You need wood.
Yesterday I bought Boise Cascade Company (ticker BCC) at 118.40. I will sell it in 4 to 6 weeks at 135.76. Here’s why I love BCC:
First of all, look at this amazing chart. This company’s stock price is on a rampage because of the need for more wood.
The stock price is up 66% in the last 12 months but its PE is only 9.4. It has great growth potential and yet it is trading at a great value. I like it for both reasons.
Boise Cascade Co. engages in the manufacture and distribution of engineered wood products (EWP) and plywood. It operates through the Wood Products and Building Materials Distribution (BMD) segments. The Wood Products segment manufactures and sells engineered wood products, plywood, particleboard, studs and ponderosa pine lumber. The Building Materials Distribution segment distributes and sells broad line of building materials, including engineered wood products, oriented strand board, plywood, lumber, and general line items such as siding, metal products, insulation, roofing, and composite decking. The company was founded on October 29, 2004 and is headquartered in Boise, ID.
Yes, Boise Idaho is more than just potatoes. Who else remembers the 2007 Fiesta Bowl when Boise State ran the Statue of Liberty play to beat Oklahoma? Never mind all that. How about all the money I’m going to make by owning this stock.
There is a lot of support for the floor of this stock price, particularly the aforementioned low housing inventory. Even though this is a great long term value investment, combine this fact with rising GDP growth and the possibility of relaxation of interest rates and this company stock could explode in the short term. The fact that the company is nurturing its dividend and has deployed a share repurchase program indicates that management’s outlook is very bullish. In fact, the company announced a special dividend of $5/share to be paid out this year. Backing that belief, the sales of new single family houses increased by 20% through the 3rd quarter of this year. The “soft landing” may actually happen without the huge recession even materializing.
BCC reported its Q3 earnings of $3.58 per share on 10/30/2023, a positive surprise over ANAL-yst projections of $3.43 per share. The outlook, according to the company, is great:
“Demand for the products we manufacture, as well as the products we purchase and distribute, is correlated with new residential construction, residential repair-and-remodeling activity and light commercial construction. Various industry forecasts for 2023 U.S. housing starts are estimated to be 1.4 million units, compared with actual housing starts of 1.55 million in 2022, as reported by the U.S. Census Bureau. Throughout 2023, home affordability has been a challenge for consumers given higher mortgage rates and limited home price decreases. However, given a resilient economy and low levels of existing home inventory for sale, demand for new residential construction has been stronger than anticipated.”
“The strength and flexibility of our balance sheet allows us to remain committed to our reinvestment and growth strategies while also rewarding our shareholders, as evidenced by our most recent special dividend announcement. As we look forward to 2024, we are dedicated to supporting our vendor and customer partners and appreciate their ongoing confidence and trust in us. We are well positioned to navigate market uncertainties as near-term demand for new residential construction evolves.”
Look, it’s all about the value here. This stock is cheap and the outlook for growth is very favorable. The downside risk is tiny, which means that there is money to be made.
In other words, you don’t have to knock on wood to make money on BCC. I’ll be carrying my 2X4 to the bank, raising my thumb and yell “Hooooo!” just like Hacksaw Jim Duggan as the teller gives me monies.
I am HUGE!
$$$MR. MARKET$$$
www.mrmarketishuge.com
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