Guys - I dont know why you would think the market would ever be "fair" or companies "properly valued" (look at Tesla, Netflix and Amazon).
But like Tesla, TXI trades on potential future earnings (with management always screaming about 400M). Couple that with new capacity (500k tons now, 400k tons still coming), a recovery in housing + infrastructure and a low float and wham-o - you get $60+ per share.
Based on "potential earnings" I wont be surprised if they reach $70+ again. Im not saying it's right, it's highly speculative, but that is what the market craves.
This is a good short-term short perhaps but in the long run, the prospects and "potential" will keep the share price high. And management has never been more excited and confident as they are now (certainly not 2 years ago).
Totally agree. I don't understand how anyone with half a brain would own a stock like this - all you have to do is see that their real earnings only come from selling assets. Texas good ol boys better hope they sell now before there is a re-test of $45.