Sunday December 17, 2017

Penny Stocks To Buy – BLDR

A.J. Watkinson April 28, 2014 Penny Stocks To Buy No Comments
Penny Stocks To Buy – BLDR

It’s been quite some time since we took a look at one of our previous Penny Stocks To Buy.  In fact, it’s been over 2 years since the last article was publish on our site.

We took a look at an alternative to big cap Home Depot (HD).   In that article, I told you to buy BLDR instead to save big on each share.

Since then, investors in Builders FirstSource are up over 106%!  Not too shabby of a return over the past two years…

Back then, I told you that BLDR was poised to rally as the housing recovery was taking hold, and more and more building supplies would be moving out the door at home improvement stores.  Obviously that call was dead on and it helped lift share prices.

But should you be investing in this company now?  Let’s take a closer look…

bldr 042814If you’re not familiar with them, BLDR is a company specializing in home building and remodeling products.  And as you know, remodeling has become the best way to upgrade your home which has turned both Home Depot and Lowe’s home improvement stores into the mainstream investments.

Builders FirstSource has a chain of building supply stores throughout the eastern and southern United States.

When looking at the company’s financials, investors have some decent highlights to consider.  For instance, the stock sports a forward P/E of 10x.  Also, the price to sales is attractive at 0.5x with sales at $1.5 billion.

On the flip side, net income has fallen back into the red at -$34 million.   And based on recent results, BLDR is still losing money – but not nearly as much.

With earnings just out last week, the company reported a first quarter loss of just $3.3 million versus the $11.8 million loss the company had in Q1 of 2013.  In addition, Builders FirstSource received another upgrade this past weekend from Gabelli & Co.

If you go back and re-read my previous article, the situation looks pretty familiar- the company had cut quarterly losses in half, and also received an analyst upgrade.

It’s looking like history is repeating itself.  From my viewpoint, it looks like it could be a perfect time to buy shares of BLDR as the stock remains inexpensive when looking at both P/E and P/S ratios – not to mention the company is turning around profitability as I write.

Could it be another double from here?  Only time will tell…

Keeping you one step ahead,

A.J. Watkinson

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Penny Stocks To Buy – BLDR
2 years ago, I recommended buying this stock. See what I have to say now inside…

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About The Author

A.J cut his teeth while working for more than 12 years on the corporate side of the financial services industry in the suburbs of New York City. In addition, A.J. has successfully traded stocks, options and currencies as an independent trader since the late 90's. Eventually A.J. moved out of the "rat race", landing in North Scottsdale, Arizona. During the past few years, he's worked as the editor of a number of high profile financial newsletters. In this role, he's run trading services for penny stocks, options, currencies, ETFs, and FOREX. While under his direction, each of these trading services had turned in positive performance... something very rare in the financial newsletter industry. In addition, he's been a regular contributor to a number of financial websites- writing under multiple pen names. A.J.'s current goal is to share his real world experiences and success (and failures) in the various financial markets to help others not only make money- but avoid losing it. It's this vision and passion that has led A.J. to launch Most of all, A.J. hopes to keep the little guy from getting caught up in the highly unscrupulous penny stock pump and dump scene.

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