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Allan L's avatar

Appreciate the write up.

I think this one is a sell at the moment though. I believe margins are rapidly headed back to 10% and the stock is likely to overreact to the downside. Below $100 per share, I agree this is a buy due to secular trends, but not at current prices.

Margins are inflated because copper price volatility and shortages made price comparisons difficult. As copper prices stabilize, regardless of the level, buyers of commodity cabling will drive margins down to 10% within a year. I don’t buy management’s story that customer service will enable them to maintain higher margins.

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Harold's avatar

Great write up, thank you CI.

$WIRE is not unionized but I found their Glassdoor employee reviews concerning.

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