Best Stocks for 2008: Value investor dives into Pool Corp. (POOL)

For 25 years, Steven Halpern, editor of TheStockAdvisors.com, has surveyed the main financial newsletter advisors asking for their favorite stocks for the coming year. that exposition is one of 100+ ideas in the Best Stocks for 2008 report.

Pool Corp. (NASDAQ: POOL) is my favorite speculative concept for 2008,” says Nathan Slaughter, editor of Half-Priced Stocks. “Pool Corp. is the world’s largest wholesale distributor of swimming pool supplies — selling more than 100,000 different products from a nationwide network of 285 customer service centers.

‘Sales have advanced 21% annually by the past decade, and earnings have more than kept pace — climbing at a stellar 34% clip. Naturally, all of that has translated into hefty gains for shareholders, with the stock soaring nearly

1,000% by the past ten years.

“In recent months, though, the company has been an indirect victim of the sluggish housing market, as a slowdown in new home interpretation in key markets like Arizona and California has forced management to trim back its full-year earnings guidance.

“However, don’t let that short-term weakness cloud the sunny long-term outlook. The huge majority of the company’s trade is tied to maintenance for older pools. Only around one-third of its revenues stem from new pool interpretation — and the bulk of that comes from existing homes, not new ones.

Continue reading Best Stocks for 2008: Value investor dives into Pool Corp. (POOL)

Original post by Steven Halpern

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