Buy Masonite

By Linda McDonough • July 25, 2016

We’ve been patiently watching Masonite (NASD: DOOR), waiting for the right time to cross the threshold. The Florida-based maker of doors had relied on cutting costs to increase profits until recently.

But now we’re seeing higher sales.

Masonite finally caught the wave of improving home starts in the fourth quarter of last year. The stock leapt 14% on that first sign of demand and stepped up another 17% when first quarter results confirmed the greater demand.

We weren’t quick enough to catch the fleeting Brexit sell off in the stock but think the sound fundamentals justify another 30% gain.

Target $88

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Jon D.

07/27/16 ‐ 11:36am ET July 27, 2016 at 11:36am ET

Hi Linda,
Thanks for the suggestion on DOOR, I waited til this AM to enter a position. I went with technical reasons, which may only make sense to me the PPO short term oscillator gave me a buy signal MACD is getting there but not flipped positive yet. RSI is at 51.21 Todays candle is on the Bollinger Band midpoint and I realize there will be a resistance area from 50 day MA which it is below, and past areas it has stalled out in up to maybe 69.35 area. I am also eyeing the top and bottom Bollinger Band “Squeeze” in play, which tells us there is an increase in volatility coming- we have to wait and see price action to know which direction. The CMF indicator has flipped to green again which shows moolah is coming back in. last the stochRSI has past above its midpoint and this is important AFTER it hit an area below 0.2. Just zoomed out chart so folks can see the scoters was in the brown area in early June but did not have enough momentum but then on 6/27 went for it and on 7/1 got into the green area. The idea behind this chart is to get in at start of a new rise in price. http://schrts.co/JAT8Gh Best Wishes for good trades to members; and thanks for your Brilliant research as always.

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About The Author

Linda McDonough

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Linda McDonough is a veteran hedge fund analyst who loves to break down company financial statements and identify market inefficiencies to uncover big opportunities. She believes in a boots-on-the-ground approach that includes surveying customers, interviewing company executives, or doing whatever it takes to see what others don't.

She's now brought her experience as a hedge fund analyst to subscribers of her Profit Catalyst Alert service. Her system identifies small- and mid-cap stocks that are about to move due to catalytic events that few others can identify...until it's too late. These events often times result in massive gains for her followers.