Junction TX, remodeling vs. new housing, and Brooks
The Texas property is the old, unused, Junction, TX extruder plant. It had the three oldest, less efficient low capacity extruders. Ancillary equipment (mixers, coolers, feeds) from Junction was salvaged and re-purposed in the Springdale plants. I believe the Junction property was wholly owned by the Brooks family and leased to AERT. It is not in a prime location, and probably has low relative value, currently.
Brooks has ALWAYS been 'optimistic' about the future, even when things were going to hell in a handcart. Although, AERT's future outlook is improving, taking Brooks at face value has proven to be misleading, at best... His comments are almost always 'rosy', premature, vague, and unquantifiable. Best keep your eye on the financial metrics rather than Brooks' 'stories'.
As to appealing to 'new home' builders, only individual home builders will be pertinent. Many commercial home builders will not invest in high end decks. The ROI is low. They are more likely to install treated wood because it is cheaper, looks pretty good initially, but has a shorter life and higher replacement cost. Commercial home builders are much less likely to consider ongoing MX expenses of a home than the home owner.
In the past, home remodeling market has lead the 'housing' market by anywhere for 6 to 12 months. Near term sales, will be fueled more by remodeling/rehab, than by new home sales, unless 'spec' homes are involved. The analysts are bullish on the 2013 remodeling market, and are tossing out 20-25% increase numbers.
Google "home improvement market"
However, the housing market, while expected to improve, will not be a 'boom'. Inventories are still too high, and financing is not as 'liberal' as it used to be. 2014 will probably be better.
Google "housing market prediction.
Watts' plastic is still the big question. Could be big, but WHEN?
2014 Q1 - maybe $0.50 -$0.75 pps, if very lucky.
2015 Q1 - is more likely to reflect a bigger relative 'lift', maybe a $1.00 pps
The Junction TX property is a 6.84 acre lot with an appraised value of $45,190..It is located at 8432 Ranch Road and there is no mention of any structure/building so I assume that the structure was removed some time ago and only the land remains..The taxes are only $776 a year so I guess it's not bleeding the company too bad...As for the new home builders, I am starting to see more expensive add ons going into new homes. I hope the trend continues..
A friend of mine just bought an existing home and moved in. I stopped by for first time last weekend and he gave me tour. Showed me his composite deck and said that was one of the main things that got him to select this one. Just FYI.