Damn, I wish I had shares in a company that I could sell whenever I needed a few $100k. I buy a few things from a couple of their companies and have gotten decent pricing and service. If you remember our conversation about Mueller awhile back, This might happen here. A more likely scenario is right now the margin is looking good because of inflation. The inventory on hand is gaining value in the face of falling sales. This is great until the inventory has to be replentished and prices have to stay in line to be competetive.(maybe wishful thinking on my part) Prices on basic plumbing supplies are going through the roof and I am having a really hard time bidding anything. Water heaters for an example are going up approx 15% in June because of the steel price. Look at Masco, who makes Delta faucets. Delta faucets have climbed in price and the sales have fallen. Not a good deal for them, me, or you, the customer. I am not sure where this going to all play out, but my copper supply is being kept under lock and key and I am battening down he hatches. The new plumbing van might have to wait a year or two.
I guess what I am trying to say is, it might be good time to wait before buying these kind of companies. Somewhere down the line they will be bargains. I think we are a little early to the party ;) Any guesses on a bottom?