Jason Hall

That product is going to continue to probably grow faster than the rest of our business.

That's going to hit our bottom line.

Oh, also, you know that big new factory that we're opening?

Well, expenses related to that, because it's really not contributing revenue right now, but expenses related to that, they're going to hit us even more on the bottom line next year.

And in the anti-Steve Jobs one more thing, that one more thing is, oh, by the way, we're maybe a little concerned that we've seen so much consolidation in our market, and now some of our competitors are now part of really big companies with really deep pockets.

We're going to spend a lot more money on sales and marketing next year, and that's going to hit our margin, too.

Everybody knows the housing market, the macro is bad.

All of those things together.

This is the cheapest that I've seen this stock since I've covered it on a price-to-sales basis.

You have to go back to the early 2000s to find a time when, on a price-to-earnings ratio basis, the stock was this cheap.

Emily?

Why not both?

Can it be both?

I think it's all of these things.

But I think what we often forget with a company like Trex, that it's a classic rule breaker that's no longer a rule breaker, it's become the rule maker, is the thing that is probably its biggest competitive strength

is its cost advantages.

If you look at its manufacturing, 95% of its inputs are waste products, waste plastic and waste wood.

If you look at TimberTech, which is its largest direct competitor, as they move up the product into their nicer product,

Only about 65% to 70% are those waste products, which means they're feeding a lot of virgin resin and other products in there, and it costs more.

Cost advantages when you're a manufacturer in a cyclical industry really, really matter.