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.

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