Universal Forest Products' Shares Dropped: What You Need to Know
Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of wood-products producer Universal Forest Products (NAS: UFPI) look stunted today after falling as much as 10.5% on light volume.
So what: The new government plan for easier access to mortgage refinancing options left homebuilders in arrears, with industry giants from Lennar (NYS: LEN) to MDC (NYS: MDC) falling much faster than the general market -- and Universal Forest's main business lies in supplying materials to new construction.
Now what: Anything that helps homeowners stay in their old homes rather than commissioning a new one will obviously hurt this entire market sector. On the flipside, we'd all need to take better care of our aging homes instead, which explains why Lumber Liquidators (NYS: LL) , Home Depot (NYS: HD) , and Lowe's (NYS: LOW) are beating the market today. But all things considered, I'd much rather look as far away from the housing market as possible for my next investment. Take a look at these five terrific stocks that the Fool owns and you should too -- there isn't a homebuilder or lumber hauler among them.
Interested in more info about Universal Forest Products? Add it to My Watchlist.
At the time this article was published Fool contributorAnders Bylundholds no position in any of the companies mentioned. The Motley Fool owns shares of Lumber Liquidators and Universal Forest Products.Motley Fool newsletter serviceshave recommended buying shares of Lumber Liquidators, Home Depot, MDC, and Lowe's, as well as writing covered calls in Lowe's. Try any of our Foolish newsletter servicesfree for 30 days. We Fools don't all hold the same opinion, but we all believe that considering a diverse range of insights makes us better investors. Check outAnders' holdings and bio, or follow him onTwitterandGoogle+. We have adisclosure policy.
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