Shares of MAS are up sharply this morning after beating earnings expectations. But it’s more than that, pickled face. They make kitchen cabinetry and people are spending lots of money, further solidifying my belief that we are in the 3rd inning of the housing recovery.
“We expect new home construction to show strong growth in 2013, and anticipate repair and remodel to grow modestly, with big ticket items continuing to lag. Our focus this year is to successfully execute new product programs, improve profitability in Cabinets and Installation Services, and expand our brand leadership positions. We believe the actions we have taken over the past several years, including investing in our brands, reducing our cost structure and paying down debt, have strengthened our business. We believe these actions have positively positioned us to take advantage of the upturn in the housing cycle.“
Masco’s direct competitor is FBHS. The stock is being overlooked today and should be bid up. I bought back BZH on the MAS news. I think housing related stocks are about to take another leg up. I’ve also added to my USG position (2nd largest position next to VHC).
There is no better way to play the housing recovery than wall board. Warren Buffett knows it and will likely buy the remainder of USG, keeping its future profits to himself.
Why don’t you?
Get your heads out from the pickle jars and buy a house.