Author Topic: BXC - Bluelinx Holdings  (Read 2209 times)


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Re: BXC - Bluelinx Holdings
« Reply #10 on: November 07, 2019, 06:22:28 PM »
I was involved here and know the story quite well.  The merger was so attractive because the synergies (which they actually achieved in short order) were enormous.  It was a BLDR/ProBuild redux.  FCF never materialized because the collapse in lumber prices crushed their margins.  Margins are now recovering nicely, but they lost a large siding customer last quarter and it became clear on the call yesterday that the sales dis-synergies are more serious than people (including management) realized.  This was the nail in the coffin.  A declining top line will kill this levered business quickly, which is why it is justifiably down ~50% in 2 days.