Thursday, January 15, 2009

The incredible Vulcan


If you believe the assessment of David Peltier, a research associate for TheStreet.com, heavy debt makes Vulcan Materials an unlikely takeover target. "Vulcan has had a rough start to 2009, with the shares down nearly 8 percent year-to-date, trading last week around $64," writes Peltier. "Prior to that, the stock had gained nearly 72 percent between Nov. 21 lows and the end of 2008 because of some short-covering and the snapback in infrastructure from the stimulus plan proposed by the next president. "Vulcan would definitely benefit from increased building activity, especially if it means new highways and bridges," Peltier said. "The company is the largest producer of construction materials like crushed stone, gravel and sand in the world, and also sells asphalt and concrete. In November 2007, Vulcan increased its scale with the $4.5 billion purchase of competitor Florida Rock Industries."

Read the rest of the article here.

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