Huttig Building Products (HBP) is the largest wholesale distributor of millwork and specialty building products in the USA. This sector is red hot. Sales are accelerating as people are renovating old homes and new home construction heats up.

The company has revenue of over $800 million per year, but the stock trades at only $1.70. The whole market cap of this company is under $45 million.

Volume has picked up in the last few days and I think something is up. People are starting to realize that this company is massive and is completely undervalued.

Earning are on Monday, August 3, and they will likely smash expectations and guidance should be for double digit growth.

Micheal Burry actually did a writeup on the company a few years ago and was a buyer of the stock, as well as Seth Klarman, another hedge fund genius. The stock is trading today at about those same levels as when they bought the stock. https://www.valuewalk.com/2014/02/michael-burry-stock-write-up/

HBP might even be a takeover play. The top 6 investors own over 35% of the company

  • Hauser Familiengesellschaft mbH JB Capital Partners, L.P.
  • Paradigm Capital Management, Inc.
  • Mill Road Capital Management LLC
  • Tocqueville Asset Management LP Vrabely (Jon P)

And most of the owners are buying more.

You can check the ownership here: http://investor.huttig.com/stock-information/ownership-summary

I actually think this thing gets bought out… If it hangs around this price, it's an ideal buyout candidate.

The Play: I think HBP should be trading at $10. The stock price was over $8 just a couple of years ago and the sector is much stronger now with considerable growth.

submitted by /u/mtl_dood
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