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    Digging For Investment Ideas In The Construction Sector

    Sun, 12/18/2011 - 13:27 EDT - Seeking Alpha
    • Alan Brochstein
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    • VMC

    ab analytical servicesBy Alan Brochstein, CFA:
    The hostile bid by Martin Marietta Materials (MLM) for larger Vulcan Materials (VMC) last week caught a lot of attention, but beaten-down construction-related stocks had already been enjoying some investor attention lately. While the performance within the group has been mixed, the average stock ($100mm or greater market cap) in the building products, construction materials and construction and engineering industries (53 stocks) has beaten the S&P 500 over the past month by over 2% and by almost 8% over the past three months. Homebuilders are up even more robustly over the past three months, outperforming the S&P 500 by a stunning 18% but still down 21% on average over 2011 relative to the market.The recent excitement seems to be a contrarian reflex, as the data doesn't seem to justify such a sharp move. We also seem unlikely to be about to embark on a fiscal spending program that mightComplete Story »

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    Related

    • A Short Of Vulcan Materials May Mean Big Profits

      By David White:Martin Marietta Materials Corp. (MLM) was trying to buy out Vulcan Materials Company (VMC). In late 2011 it made a hostile takeover bid of $4.8B for VMC ($36.69 per share). This was rejected by VMC.

    • Martin Marietta And Vulcan Materials' Unfriendly Merger

      By Robert Broens: Martin Marietta Materials (MLM) announced the intention to merge their operations with Vulcan Materials (VMC). The combined combination would become the global leader in construction aggregatives, with a combined market capitalization of $7.7 billion as of Friday's close. The Deal

    • Sidestep The Vulcan-Martin Marietta Takeover Drama With These 11 Stocks

      By Stocks & Shares:Hostile takeovers are among the most compelling events in business. These events involve conflict between executives, courtrooms, and other elements seen in prime-time drama. Though interesting and entertaining, hostile takeovers do not necessarily afford attractive investment plays.

    • Vulcan Materials: A Victim of Economic Conditions or Bad Decisions?

      William Kabourek submits:The recession and its impact on certain industries remains far from over. The aggregates industry, forgive the play on words, is a bedrock of the U.S economy. However, it hasn't been very hospitable to owners in that are central to the economy can experience significant troubles, especially if balance sheets get stretched.

    • Martin Marietta makes $4.8 billion bid for Vulcan

      Martin Marietta Materials Inc launched a hostile $4.8 billion all-stock offer to buy larger rival Vulcan Materials Co in a bid to build the world's largest producer of sand, gravel and other construction ...

    • Martin Marietta makes $4.8 billion bid for Vulcan (Reuters)

      Reuters - Construction aggregates maker Martin Marietta Materials Inc launched a hostile $4.8 billion all-stock offer to buy larger rival Vulcan Materials Co in a bid to build a global leader in an industry that has been battered by the housing-market downturn.

    • DealBook: Martin Marietta Materials Unveils $4.6 Billion Hostile Bid for Vulcan

      Martin Marietta Materials began a hostile bid for Vulcan Materials, its rival in the business of producing crushed stone and gravel for construction, after more than a year and a half of fruitless private talks.

    • Martin Marietta launches hostile bid for Vulcan

      RALEIGH, N.C. (AP) -- Martin Marietta Materials has launched a hostile takeover bid for rival construction materials company Vulcan Materials with an offer to buy the company for $4.74 billion in stock....

    • Judge Freezes Martin Marietta's Bid for Vulcan

      Martin Marietta Materials was barred from pursuing its hostile bid for Vulcan Materials for four months after a judge ruled the Raleigh, N.C., construction-materials firm had breached confidentiality agreements.

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