I'm looking through the most recent 10-K for MHK, which has a ceramic tile segment... 2009 sales are down about 25% from their 2007 highs.
So even if there is a real estate bubble in certain areas of the country, and it pops, it's not like construction halts all across the country. There is still a lot of rebuilding going on in the Sichuan earthquake zone, there was another earthquake today in Qinghai, and there are always old buildings going down and new buildings going up. CCLTF would most likely remain profitable through a downturn. I think a PE of 3 is a pretty wide margin of safety here.
