Investment Q&A

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).

Q: I've got these laggards in a TFSA or RRSP, down between 15-36%! I want to dump a bunch (all?) as I feel I've given them enough time to perform and they haven't. Does 5i see catalysts in the next 12 months for any of these that i should keep some?

In which order would you drop them.

Q: If the US pundits are correct and we are moving in a "peak" interest rate world this would bode well for the various forms of accommodation construction. Projections seem to suggest supply will remain tight until mortgage rates ease, and I believe that is likely as we move into the latter half of 2024.

Given that, my first question to you is do you feel that now, or soon, is a reasonable time to look into companies who would benefit from an expanding US housing market? If so, I would be interested in your take on a "top 3" home builders to invest in and then a "top 3" within the home construction supply chain. I already own a couple of lumber producers and am interested in mid-stream suppliers.

Thanks very much; Merry Christmas to you all.

Q: I've heard from acquaintances in the industry that the price of lumber is going to remain high right across Canada, similar to Summer 2020. Is it the same in the US? Is Trex a good cyclical play for Spring 2021? Buy/Sell/Hold?
Thank you, Ian.

Q: Hi guys,

Your thoughts on Trex.
Thanks

Jim

Q: Hi team,

Could you suggest companies or ETFs which would marry environment concerns and good returns ?

What comes to mind are wcn-t (waste disposal) and trex-n (turning plastics into decking products) but there must be others.

Thank you in advance for your comments and suggestions.

Jacques

Q: It appears that the world has finally woken up to the fact that we are choking in plastic. Do you have any stocks that you think might be poised to take advantage of this? I did come across one, TREX-N, that I found interesting. It is a US stock but your opinion would be appreciated.