Buy GMS

By Linda McDonough • September 20, 2016

GMS (NYSE: GMS) is a leading distributor of wallboard and suspending ceiling products in North America. The company just came public in May 2016 and currently trades just above its IPO price. A mid-September report that just missed analysts’ revenue estimate sent the stock down 8% giving investors the rare chance to buy close to its $21 issue price.

GMS reported its 20th consecutive quarter of double digit sales growth. Revenue jumped 22% and earnings an even greater 35% due to more profitable products. GMS’s expertise in just in time, precise delivery of gypsum and wallboard products makes it a favorite of builders.

Build up your portfolio with GMS, a stock that could rise 60% from today’s levels. A strong base business boosted by acquisitions of regional competitors should expand earnings 22% to $1.74 in 2016 and another 18% in 2017.

Target $36

And please don’t forget to check out your latest issue of Profit Catalyst, out today.

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Pat Beyea

09/25/16 ‐ 7:58pm ET September 25, 2016 at 7:58pm ET

Boy do I need a dictionary of investing lingo, because most of it sounds like a foreign language!!

Linda McDonough

09/26/16 ‐ 5:56am ET September 26, 2016 at 5:56am ET

Pat,
I’m happy to help with any questions you have. Please let me know what terms need some clarification. I’ve been using them for so long I sometimes don’t realize which ones need to be broken down, so ask away!
Best,
Linda

Jon D.

10/05/16 ‐ 11:41am ET October 5, 2016 at 11:41am ET

Hi Linda,
I have to admit I missed an alert which I ought not to but soccer season has me busy. When I read it on an email this AM I decided why not ‘get a piece of the rock’ sheetrock that is. Certainly don’t feel “hyped” a bit, it is green all way across my screen. I have a profit already, but I will be patient and ‘Hang’ – in for that higher target.
Cheers,
Jon

Thomas Browne

04/24/17 ‐ 2:21pm ET April 24, 2017 at 2:21pm ET

Hi Linda:
It was great meeting you at Summit! Thanks for another phenomenal winner with GMS. Today it surpassed your target. Is it time to take some profits off the table with this one?
Regards, Tom

04/25/17 ‐ 6:43am ET April 25, 2017 at 6:43am ET

Hi Thomas,

Great to meet you as well! Funny I’ve been eyeing GMS and considering taking it off the table. I’m just reviewing the numbers one last time to see if I should bump the target up.

You’ll see an alert is I think it’s a sell.

Best,

Linda

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