Wednesday, October 25, 2006


Last September 20th, I saw good possibilities for SIMPSON MFG CO INC (SSD), through it's subsidiaries, Simpson Strong-Tie Company, Inc. and Simpson Dura-Vent Company, Inc., operates in the building products industry.
Eventhough it has been hurt by the weakness in the housing and construction industry, we may have seen the bottom for this sector.
Selling at 27.07 on that date, today is trading at 26.67 still looks attractive, formed a nice base on the chart with support at 25.
Average volume is 446,000, earnings have increased continuously for the last 7 years, trailing P/E is at 12.
The stock is widely shorted, but that may change on a strong upturn. It could have a very nice upside move if, within the next 2 weeks or so, it closes convincingly above it's 50 day moving average of 27.
I'm keeping an eye on this one.

No comments:

Post a Comment