Scottsdale, Arizona-based Construction Materials and Weatherproofing Technologies firm Carlisle Companies Inc(CSL) is down 4% on a 52-week basis, closing at 412.69. Not that long ago, the stock traded below its 100D and 200D moving averages. So far in 2025, the company completed the purchase of Bonded Logic and ThermaFoam, made new appointments to its Board of Directors, and restructured its leadership team. The stock appears to be on the move, and I find it interesting because it plays into the narrative that the “imminent” Fed rate cuts can “positively affect the construction industry,” as “lower borrowing costs make it cheaper for developers to finance new projects.” A company like Carlisle(CSL) can benefit from this conceivable trend. Considering the company maintains a profit margin of 20-25% and the market rewards the stock with a 17-24x multiple, the stock can trade between 350 and 580.
A very important quote.
As paraphrased by my favorite financial presenter, Tom Keene of Bloomberg Radio, it’s not the prices of assets that spook investors, but rather the rate of change.
Every day during the trading week, Mr. Keene’s “good morning, good morning, good morning” at 7:00 a.m. serves as a personal point of focus. It offers an opportunity to listen to a well-respected market observer and commentator who is hyperattentive towards the pedigree of the market participants in discussion and focuses on the whispers rather than the noise of the crowd. By blending economics, investment, finance, and most importantly, international relations, Mr. Keene’s observations of the market are pretty insightful and informative. What started as an opportunity to learn the English language evolved into a habit, as behind the curtain of market analysis and news, was a well-informed market education.