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What: Shares of specialty materials manufacturer Ferro
So what: The stock is bouncing off a 52-week basement floor thanks to a surprisingly positive housing report. Ferro doesn't build houses or cast concrete foundations but provides chemicals to makers of actual building materials on a large scale.
Now what: Fellow Fool Travis Hoium likes the profit trends in Ferro and thinks the stock deserves much better than this 66% year-to-date share-price swoon. There are certainly more direct plays on a housing recovery than this one, but the price is right if you believe in the company. One word of warning before diving in with both feet: Ferro's balance sheet is cash-poor and heavy in debt, and the company needs to turn its negative cash flows around to avoid a very serious cash crunch.
Interested in more info about Ferro? Add it to My Watchlist.