The Bottom Line 6-14
TRG continue to focuses on fresh ideas in the month of June, focusing on hidden value. This week’s stock idea focus was on Owens Corning (OC), making a case for why storms and cash flows matter for this stock. The domestic roofing outlook has improved in 2019 with increased storm activity, and importantly, OC stock historically has often traded directionally with its Roofing segment earnings trends. This week also saw big swings in Summit Materials (SUM) stock on the news of the departure of its COO Karl Watson, Jr. and then the rumored bid by Argos for the company. We continue to believe it would be challenging to Argos to take on all of SUM, although the news “leak” may be a way to push for a conversation around Summit’s cement assets.