Q: Trex has declined significantly since March of 2024. I had purchased some stock just before the precipitous decline at the beginning of November this year and am now down about 50% on 1/2 a position.

This creates a question; is the stock now dead money until the US consumer economy sorts itself out (which I think is a few years away at least), or is this a buying opportunity today to fill the remainder of a position and wait it out?

Trex is a leader in its' market, yet requires new home and renovation build out to successful. The precipitous drop has now brought it to analysts attention as they try to resolve questions similar to my own.

Would you be a buyer, and if so with what time frame in mind, or would you sell and come back to it in a few years?

Thanks as always, and best of the season to you all!

Dave

Q: I would appreciate your comments on TREX earnings; released yesterday. It appeared to me that metrics are generally improving, yet the stock dropped $15 at today’s open.

My main interest is understanding if there is some structural/metric issue causing the drop, or is it more related to their statement on outlook for the next 1/2 of the year?

Thanks as always,

Dave

Q: Good morning all; Could I get your assessment of Trex for 3-5 year hold. The products seem to have broad appeal; particularly in what will at some point become a growing build and reno (their primary customer) environment. The breadth of product offering is expanding annually. With $1B + and growing sales, an aggressive "sustainability" effort and decent margins this stock is intriguing after yesterday's 6% decline (not sure why it declined so much).