Own DBM since 2019 under CWX. Is this pullback an opportunity to add to my position?

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Asked on July 13, 2021 8:35 am
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Company does look to be trading at extremely attractive valuations. It's done a very nice job growing the top and bottom lines as well over the last half decade. Earnings are very inconsistent, but this is understandable considering its cyclical nature.

Hard to argue with the dividend either. Paying out only 60% of free cash flow and yielding over 6%.

You can pretty much tie this company's rise and subsequent fall to the rapid price increase of lumber however. So, just know that if prices continue to shrink, it's very likely that DBM's will follow. I'm not a massive fan of cyclicals like this, but I do understand why some hold them.

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Posted by Dan Kent
Answered on July 14, 2021 10:21 am