We're adding a new stock to our longer term buy & hold portfolio this week. This is another play on the UK construction sector, but rather than a house builder, it is a maker of bricks. This is a company which we think has the potential to provide investors with considerable upside in an area of the British economy which we believe has more post-pandemic puff to deliver.
Bear in mind that the production capacity of the UK brick manufacturing industry remains constrained when set against the wider demand. We are still seeing record low levels of brick stocks. Builders are also still paying a premium for quality bricks and paving.
Getting the right bricks is something of an art for developers, and big projects can make a difference to this company's bottom line. This stock rallied nicely at the end of last year, and as a small cap sub GBP 100m market cap has scope to do it again.
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