Headwaters Inc. continues to slow, posts loss
Headwaters Incorporated Announces Results for Second Quarter of Fiscal 2009 – Yahoo! Finance.
I have always thought that the different business lines of Headwaters, Inc. (HW: 5.17 +0.13 +2.58%) were well managed and offered a lot of future potential. Unfortunately, those business lines have been particularly hard hit by the economic slow down.
Headwaters has been in a restructuring process of their basic business for about two years now. The previous bread winner ceased to be so when the portion of the tax code that allowed the profits expired. Since they HW has been expanding into related lines, but has not yet generated an overall growing revenue and profit stream.
At this point if I was an investor looking at the stock I would wait until economic conditions start to provide positive results to the company’s building materials lines with increasing revenues and margins. Since I already own a small position (much smaller than when it started!) in the stock, I am going to hang on and see how long it takes for the company to turn thing around.
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