Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Sam Citron who wrote (27575)	8/3/2007 5:04:15 PM
From: Jurgis Bekepuris	Read Replies (1) \| Respond to of 78702

I did not follow HW in 2005. Looking back, revenues and earnings almost doubled for couple years leading to 2005. From what I remember Fools had it as a great (alternative?) energy play and of course all energy (and alternative energy) stocks ran up then. The case is pure valuation plus rather interesting initiatives. The company has had over 20% ROE for the last 5 years. Now ROE dropped to ~13. It might recover, but even if we get 13 ROE going forward, the stock is hugely undervalued with 20% expected annual return. If it manages to go back to 15 or 20%, it would be huge. Now it is being pushed lower for housing material business and maybe for the earnings from tax credit legislation that is expiring. Are these two things a big issue? I don't think so, but I may be wrong. :) For me it seems that HW is a innovative company looking and finding new ways to play in the energy and alternative energy fields with low valuation. :)