Posted: 8 month(s) and 21 days(s) ago   |   0 Comment(s)   |   Rating: 0 0
Posted by: ToddShriber

Patrick Industries (PATK.NSDQ), a maker of construction products for the manufactured homes and recreational vehicles industries, soared 48 cents, or 45%, to $1.54 today, making the stock the biggest gainer on the Nasdadq. Volume was about 50% higher than normal.

Talk about an odd move, especially given the circumstances surrounding Patrikc's two main sectors that it supplies. Manufactured homes and recreational vehicles suffer mightily in tough economic times and Patrick's share performance reflects that. This was a $6 stock in October and has been in a death spiral ever since.

Patrick Industries has over $59 million in debt with a market cap of just $13,9 million. Granted the company has been around of 50 years, so I'm not saying it's going to disappear, but if consumers are worried about their jobs, they're not going to be buying polo shirts and khakis, let alone recreational vehicles. It's too risky to get involved with Patrick Industries here, even at the low valuation.

For more on Patrick Industries, go here: http://www.patrickind.com

Member Rating: 0 0