Foundation Building Materials Inc NYSE (FBM)

[mick]

Foundation Building Materials (FBM) has gone public in an IPO which has not been well received. Demand for the shares of the building materials distributor, which employs an aggressive roll-up acquisition strategy, has been very soft on the back of poor margins and high leverage being employed.

These reasons and an unusual tax receivable agreement with the sponsor of the company makes it very easy for me to avoid the shares. Despite the ¨discount¨, I see no imminent appeal given the lack of profits, or outlook for profits in the near term.