×

Summer Stocks: At the Pool

graphic_fast_money.jpg

It’s estimated there are around 8.5 million pools in the U.S. And Pool Corp. (POOL), the largest publicly traded wholesale distributor of swimming pool supplies, has rebounded from a winter freeze with a strong summer run so far – shares up 23% in the last three months. CEO Manuel J. Perez de la Mesa joins the guys on the Fast Line to discuss whether the pool industry is something worth jumping into.

Perez says his company is in a growth industry and it makes almost all of its profits in the second and third quarters of the year, breaking even in the first and fourth.

There is debate as to whether owning a pool adds or diminishes the value of a home. Perez says adding a pool could tack on 6-15% of value to a home, especially homes in warmer climates. In some neighborhoods, “you can’t afford not to have a pool,” he says.

Not all the guys are in accord on this business, or this stock in particular. Jeff, Eric and Pete don’t think there’s much to the industry. But POOL itself is up nearly 25% since March, Guy notes. Who is he to argue against numbers like that?

Symbol
Price
 
Change
%Change
POOL
---




Trader disclosure: On June 18, 2007, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders:Najarian Owns (CHU), (MS); Bolling Is Short (FXI) and owns (FXI) Puts
GE is the parent company of CNBC
CNBC is a service of NBC Universal and Dow Jones

______________________________________________________
Got something to say? Send us an e-mail at fastmoney-web@cnbc.com and your comment might be posted on the Rapid Recap! Prefer to keep it between us? You can still send questions and comments to fastmoney@cnbc.com.