Interesting Charts – Week 41

October 8, 2018

The perception that equity prices are too high and that market volatility is about to pick up make it difficult to invest new money, but the search for interesting charts continues.

The following companies may be worth evaluating further.

INST – Instructure is an online education service provider, it uses a SAAS model so revenues should be relatively smooth, but recent earnings have been weaker than expected.   The balance sheet looks strong and the equity has been knocked down, so it may be worth a more in-depth look.

20181008 - INST

LPX – Louisiana-Pacific Corporation is a provider of building materials and has suffered some setbacks due to Hurricane Florence in September 2018, but these don’t appear to be significant fundamental shocks, and there is a high probability that their revenues will get a significant boost from the rebuilding effort.  They have robust revenues, excellent cash on hand and relatively low debt.   This is a company worth looking into.

20181008 - LPX

That is all I can find for today.   It is worth noting that homebuilders and building materials have all been getting hit lately and so there are other companies in the space that might be worth looking at.   I have made these selections based on their charts and a brief look at their balance sheets to note that they are not burdened with exceptional debt.   It is difficult to know where they will bottom, and so waiting for a bottom formation might be appropriate.

Similarly with my choices for last week, bottoms are not in, and the market continues to go down (although it is only Monday morning), so if timing is important, then patience may be appropriate.

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