Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of building products maker Nortek
So what: Sales grew 7% from last year to $522.8 million and gross margin increased nearly 2 points to 27.9%. But the company still posted a net loss of $1.2 million, or $0.08 per share.
Now what: The commercial HVAC segment drove most of the increase in sales by growing 39% from a year ago. The improvement is good, but I'm still concerned that the company isn't posting a quarterly profit and I'm leery of a big recovery in building products. I'll pass on shares today, but if Nortek can continue to turn around operations in future quarters, it will be worth another look.
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