Building Materials Holding Corp Moat Check
Read the full article at: http://www.fatpitchfinancials.com/413/building-materials-holding-corp-moat-check/
Submitted by George on Fri, 2006-10-13 10:39.
(via www.fatpitchfinancials.com)
Fat Pitch Financials takes a close look at whether or not Building Materials Holding Corp has a wide moat.
A Cheap Stock?
George,
I'm glad to see the wide-moat test being applied to a quantitatively cheap stock. Too often it seems the question is whether we're willing to pay a tremendous premium over a rational price based on current performance in order to bet on future performance.
Although I agree with you about BMHC's moat (there is none), I'm glad to see such a cheap looking stock (on the traditional p/e, p/b, p/s, metrics) being discussed – rather than, say, Whole Foods (WFMI) which may be a wonderful company, but is clearly a pricey stock.
Who cried cheap stock?
Be careful announcing a cheap stock. You might start a stampede around here.
I thought something exciting was going to be reported here, but alas, it's only my moat check of BMHC. You had me going there. :-)