This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

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.
Bret Kenwell currently writes, blogs and also contributes to Rocco Pendola's Weekly Options Newsletter. Focuses on short- to intermediate-term trading opportunities that can be exposed via options. He prefers to use debit trades on momentum setups and credit trades on support/resistance setups. He also focuses on building long-term wealth by searching for consistent, quality dividend paying companies and long-term growth companies. He considers himself the surfer, not the wave, in relation to the market and himself. He has no allegiance to either the bull side or the bear side.

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG
BLD $31.49 -0.73%
AAPL $111.02 -1.50%
FB $89.15 -0.31%
GOOG $607.90 -1.70%
TSLA $242.80 -2.50%

Markets

Chart of I:DJI
DOW 16,176.92 -351.11 -2.12%
S&P 500 1,936.42 -35.76 -1.81%
NASDAQ 4,712.1440 -64.3640 -1.35%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs