Best Rising Stocks To Invest In 2014

Best Rising Stocks To Invest In 2014: Encore Wire Corp (WIRE)

Encore Wire Corporation (Encore), incorporated on April 5, 1989, is a manufacturer of electrical building wire and cable. The Company is a supplier of building wire for interior electrical wiring in commercial and industrial buildings, homes, apartments, and manufactured housing. Encore offers an electric building wire product line that consists of nonmetallic-building ( NM-B) cable, underground feeder-building (UF-B) cable, thermoplastic high heat resistant nylon coated/thermoplastic heat and water resistant nylon coated (THHN/THWN)-2 and other types of wire products, including metal clad and armored cable. All of these products are manufactured with copper or aluminum as the conductor. The principal customers for Encore's wire are wholesale electrical distributors, who sell building wire and a variety of other products to electrical contractors. The Company sells its products primarily through 31 manufacturers' representatives located throughout the United States. Th e Company also purchases small quantities of other types of wire to re-sell to customers that buy products that the Company manufactures. The manufacturing process for the Company's various products involves multiple steps, including: casting, drawing, stranding, compounding, insulating, jacketing and armoring.

The Company's non-metallic sheathed cable is used primarily as interior wiring in homes, apartments and manufactured housing. NM-B cable is composed of either two or three insulated copper wire conductors, with an un-insulated ground wire, all sheathed in a polyvinyl chloride (PVC) jacket. UF-B cable is an underground feeder cable is used to conduct power underground to outside lighting and other applications remote from buildings. UF-B cable is composed of two or three PVC insulated copper wire conductors, with an un-insulated ground wire, all jacketed! in PVC. THHN/THWN-2 cable is used primarily as feeder, circuit and branch wiring in commercial and industrial buildings. It is composed of a copper or aluminu! m single conductor, either stranded or solid, and insulated with PVC, which is further coated with nylon.

Cross-linked high heat water resistant insulated wire (XHHW)-2 Cable is a XHHW-2 wire used for general purpose applications utilized in conduit or other recognized raceways for service, feeders, and branch-circuit wiring. It's composed of a copper or aluminum single conductor, either stranded or solid, and with a single layer of cross-linked polyethylene (XLPE) insulation. Underground service entrance (USE)-2 Cable. USE-2 or rubber high heat-resistant (RHH) or RHW-2 wire is used for general purpose applications utilized in conduit or installed in underground applications or in recognized raceways for service, feeders, and branch-circuit wiring. It's composed of a copper or aluminum single conductor, either stranded or solid, and with a single layer of cross-linked polyethylene (XLPE) insulation suitable for wet locations.

Metal clad and armo red cable is used primarily as feeder, circuit and branch wiring, primarily in commercial and industrial buildings. It is composed of multiple conductors, either stranded or solid, and insulated with PVC, which are further coated with nylon and then fully encased in a flexible aluminum or steel armored protective sheath that eliminates the need to pull the wire through pipe or conduit. The Company's photovoltaic style cables are designed to meet the different needs of the emerging solar industry by providing connections between photovoltaic (PV) panels, collector boxes and inverters; and where also allowed by the National Electric Code (NEC). Its bare copper conductors are used in overhead electrical transmission and distribution systems for grounding electrical systems and circuit grounding.

The Company competes with Southwire Company, Cerro Wire LLC, Uni! ted Coppe! r Industries, BICC General and AFC Cable Systems, Inc.

Advisors' Opinion:

• [By Seth Jayson]

  Basic guidelines
  In this series, I examine inventory using a simple rule of thumb: Inventory increases ought to roughly parallel revenue increases. If inventory bloats more quickly than sales grow, this might be a sign that expected sales haven't materialized. Is the current inventory situation at Encore Wire (Nasdaq: WIRE  ) out of line? To figure that out, start by comparing the company's inventory growth to sales growth. How is Encore Wire doing by this quick checkup? At first glance, not so great. Trailing-12-month revenue decreased 9.2%, and inventory increased 0.3%. Comparing the latest quarter to the prior-year quarter, the story looks decent. Revenue grew 3.9%, and inventory expanded 0.3%. Over the sequential quarterly period, the trend looks healthy. Revenue dropped 4.1%, and inventory dropped 5.1%.

• [By Eric Volkman]

  Encore Wire (NASDAQ: WIRE  ) , like a strip of its namesake product, seems to believe in keeping its shareholder payouts long and straight. The company has declared a quarterly dividend of $0.02 per share, to be paid on July 19 to shareholders of record as of July 5. That amount is in line with every one of the firm's previous distributions stretching back to early 2007. 

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