Simpson Manufacturing through its Simpson Strong-Tie Company subsidiary, designs, engineers, and manufactures wood-to-wood, wood-to-concrete, and wood-to-masonry connectors and shear walls. The Company's other subsidiary, Simpson Dura-Vent, designs, engineers, and manufactures venting systems for gas and wood burning appliances.
The company is fragile. Financially, the group is in a difficult situation with a high price earnings ratio estimated at 30x for the current year. Forecasts downgraded by analysts regarding earnings per share reflect the lack of visibility in the short term.
Technically, the share is in a downward trend. Moving averages are decreasing and are still above prices, thereby stopping any rebounds. The security is going toward the USD 23.69 support, a level that will represent the first target. Therefore, we could take a short position to benefit from the downward trend. The security could quickly go toward the next support area located at USD 23.69. A stop loss will be placed above 20 days moving average. If this threshold is crossed, this bearish strategy will be cancelled.
Simpson Manufacturing Co., Inc., through its subsidiary, Simpson Strong-Tie Company Inc. designs, engineers and manufactures structural solutions for wood, concrete, and steel connections. Its wood construction products include connectors, truss plates, fastening systems, fasteners and shearwalls, and concrete construction products. Its wood construction products are used in light-frame building applications. Its concrete construction products include adhesives, chemicals, mechanical anchors, carbide drill bits, fiber reinforced materials and other repair products used for protection and strengthening structures. Its concrete construction products are used in concrete, masonry and steel construction. It markets its products to the residential construction, light industrial and commercial construction, remodeling and do-it-yourself markets. It also operates as designer and manufacturer and distributor of fixing and fastening solutions for the European building and construction market.