Replies to post #53 on PGT Inc (PGTI)

[FUNMAN]

Very interesting. In that sector I own KMI. They bought, are refurbishing or are contracting to build 10 LNG transports. It is the biggest elephant in the sector. I started with EL Paso in 2009. KMI bought them. It's been a very good run with a great dividend.

I will look into it GLOP.

On PGTI, I started treating/buying PGTI like one of my Steak Dinner Investments. Scaling in starting 1.5 years ago. I even bought them at $12. But when they dropped into the $7's and $8's I was excited. I thought folks totally misunderstood this company. I took advantage of it.

Because of covenants in their loan agreements, they are prohibited from issuing dividends. They don't care right now. The recession smacked them pretty good. For a few years now they have been positioning themselves for growth. Like another company I own (CGI ... trucking), they are "becoming" serial acquirers of other companies ala` Cisco.

I like what they are doing, and will buy on significant dips like I did yesterday. I see nothing but upside as long as the economy stays at this level or gets better.

[FUNMAN]

PGT Reaches 52-Week High on Recovering Housing Market - Analyst Blog

Zacks By Zacks Equity Research
5 hours ago

On Jun 5, 2015, shares of PGT, Inc. PGTI scaled a new 52-week high of $13.58, before closing a notch lower at $13.53. The new high came on the back of benefits expected from demand in the repair and remodeling market, strategic acquisitions, expansion of its product offerings and productivity improvement.

This Florida-based manufacturer and supplier of residential impact-resistant windows and doors has a market cap of $646 million. PGT has delivered a solid year-to-date return of about 40.5% and an impressive one-year return of over 62%, outperforming the S&P 500.

The average volume of shares traded over the last three months was roughly 277K. The company has outperformed the Zacks Consensus Estimate in two of the four trailing quarters with an average positive surprise of 8.23%.

Growth Drivers

PGT posted adjusted earnings of 14 cents per share in the first quarter of 2015, which doubled from the prior-year quarter’s earnings of 7 cents. Sales also improved around 52% year over year to $95.3 million due to growth in demand and contribution from the CGI acquisition.

For the second quarter of 2015, the company guided sales in the range of $99 million and $102 million based on both organic growth and benefit from the CGI acquisition along with continuous investment in increasing capacity. PGT expects gross margin in the band of 32% and 33% for the second quarter driven by current sales mix and improved operational performance.

Single family housing starts in Florida in the first quarter were approximately 13,300, up 4% from the year-ago quarter. PGT believes that Florida’s economy and population will continue to grow and over time reach the historical average of approximately 110,000 annually.

PGT’s improved operational performance and the new glass plant will aid margin growth. Further, the company is looking forward to the completion of the second phase of the glass plant expansion in the third quarter of 2015.

Notably, PGT’s acquisition of CGI presents an exceptional opportunity for the company. The acquisition will help PGT to diversify and broaden its product portfolio while expanding its manufacturing footprint and providing synergies by maximizing efficiencies and scale.

Moreover, the CGI acquisition and the launch of its new vinyl WinGuard and EnergyVue products in first-quarter 2015 will help PGTI to benefit from the rebounding housing market and recovery in new housing construction in its primary markets of Florida.

PGT currently has a Zacks Rank #2 (Buy).

Other Stocks to Consider

Other stocks in the same industry worth considering are Headwaters Incorporated HW, Quanex Building Products Corporation NX and Aspen Aerogels, Inc. ASPN. While Headwaters and Quanex Building carry a Zacks Rank #1 (Strong Buy), Aspen Aerogels holds the same rank as PGT.

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Zacks Investment Research

[FUNMAN]

Sent to: [e-mail] ... The PGTI and Cardinal Glass deal sounds like a very fortuitous deal for both parties and should enhance PTGI's post-Irma capabilities.

http://www.businesswire.com/news/home/20170922005084/en/PGT-Innovations-Announces-Sale-Door-Glass-Processing

PGTI's EPS last year was 51¢ with 49.6 million outstanding shares. PGTI should be able to pay a nice dividend.

The balance sheet shows $40 million in cash. The income statement shows Normalized Income Available to Common Shareholders was $26.039 million in 2016.

When will a dividend be initiated?

If your answer is PGTI has no plans to initiate a dividend my follow up questions are "Why?" and "What does PGTI intend to do with the cash and income to enhance shareholder value?"