Jim Cramer on Builders FirstSource (BLDR): “No, Thank You”
Jim Cramer, host of Mad Money, expressed his decision not to invest in Builders FirstSource, Inc. (NYSE:BLDR) during a recent broadcast. The decision comes after the company's second-quarter earnings report revealed a significant decline in net sales, gross profit, and gross margins. Despite this, Cramer acknowledged the company's strong position in the value-added prefabricated products market and its investments in digital ordering platforms to improve operational efficiency.
However, he emphasized that the severe cyclical vulnerability in the residential construction space and ongoing commodity deflation make BLDR a risky investment until a recovery in housing starts occurs.
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