Lamson & Sessions is a leading producer of thermoplastic enclosures, fittings, conduit and pipe, and wiring devices for the electrical, telecommunications, consumer, power and waste water markets.
Outlook
Great company with outstanding products. While the booming industrial and commerial segment of the buness offsets the decline in the residential market. The market doesn't favor this stock because of decline in new housing starts. The stock price should stay in a trading range until a pickup in home building.
Investment Highlights
- Net sales estimate for second quarter 2006: 29%-31% over second quarter 2005.
- Net income estimate for the second quarter 2006: $12.8 to $13.3 million, or diluted share,more than double the $0.35 cents per diluted share in the second
- Net sales for 2006 projected to grow 16%-18% to a range of $575 -$585 million.
- New Residential Housing Starts moderating as forecast from an annualized rate of 2.1 million units to approximately 1.8 million units.
- Continuing strength in Telecom infrastructuremarket (FTTP): 10%to 15% annually.
- Non residential building construction spending trending favorablyas ofApril 2006: 12.2%above April
- Sustained flow of innovative newproducts: averaged 11%-12%over last 3years.
- Disciplined management of operations
- Productivity very high for industrial companies.
- Strong insiderstock ownership.
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