Quick Take: Deconstructing a Housing Stock
NEW YORK (TheStreet) -- TheStreet's David Peltier and Lindsey Bell are on the lookout for potential breakout stocks under $10, especially now that earnings season is winding down.
When asked which stock captured her attention, Bell replied, "Builders FirstSource (BLDR) is one that we looked at." The company supplies lumber and housing materials to construction companies. She continued, "we like the housing play. This is nothing new."
Builders FirstSource is a regional company, primarily focusing on the southern and northeast parts of the United States. Bell went on to note that sales had outpaced housing starts and construction in the most recent quarter.
When Peltier asked about the balance sheet, something he always makes sure to check, Bell's response was that it "had been a little dicey."
However, she went on to say that under a new refinance program, Builders FirstSource would issue $350 million in senior-secured debt and $175 million in asset-backed loans, dropping the average interest rate on the debt from 12.2% down to an expected 6.7%. Peltier concluded that with the stock over $7 and up 39% for the year to date, he didn't want to chase it and is going to "put this one on the wait list." --By Bret Kenwell in New York.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV