Reminds me of MHK, how it dropped 15% on good earnings.

http://www.bloggingstocks.com/2009/11/03...

Nov 3rd 2009 8:20AM by Steven Mallas

Vulcan Materials (NYSE: VMC) issued Q3 results late Monday. Total revenues decreased over 20%. Earnings from continuing operations dropped 29% to 38 cents per share. According to Earnings.com, this means that the company came in a penny ahead of estimates.

Going into yesterday's earnings report, shares of Vulcan Materials were pretty active. They increased over 2% to close at $47.12. Volume was above the norm. The market was obviously quite bullish on the stock.

But should it have been? These decreases are illustrative of the rough time that Vulcan Materials, which makes materials for the construction industry, is having during this period of economic uncertainty. Indeed, the stock is well off its 52-week high.

Shareholders can take some comfort from the statement of cash flows, however. Net cash from operations for the nine-month frame grew by 28%. Plus, the amount of cash generated was more than enough for both capital investments and dividend payments. As a matter of fact, I like the cash flow a lot better this time around than when I last covered Vulcan Materials back in the summer.

If you buy now and hold for a long-term period, you probably will be all right (although nothing is guaranteed, I hasten to add). Vulcan Materials should continue to improve as the recession fades. Joesph Lazzaro made this point, and I believe his thinking is correct.

However, I'm not so fond of the six-month chart right now. So, for those who trade more frequently than they invest, I would be cautious. Some might look at the chart and see a buying opportunity, but my own interpretation is that there could be some risk for short-term money.

Disclosure: I don't own any company mentioned; positions can change without notice.