ROAD has strong long-term tailwinds and a good roll-up thesis, but is currently too expensive; prefer to wait for a lower valuation.

This one is way off the trail completely. Let me ask you Travis, have you hit a pothole with your car recently? I'm sure I have. Yes. Well, it wouldn't be uncommon because right now many people give America's roadways an F as far as where they're at in being maintained.

It is a problem. And you know what? It's even a bigger problem in some areas of the Southeast because what's happening in the Southeast or the Sunb Belt is that there's so much population shift that so many people are moving to the southeast that roads weren't designed to handle this amount of traffic.

Roads need to be widened. uh they need uh maintenance on a faster schedule now because there's just so much more traffic that plays to construction partner strengths and this is ticker symbol R O A D road.

So what does construction partners have going for it? Well, it does pave roads. I mean that's kind of what it does. It runs these crews. They have these huge road projects from the design all the way to putting that final blacktop on top.

But you think about a business like this, there are competitive advantages to having vertical integration. So you basically you have the supplies. You you can mix the asphalt in a plant somewhere, but that can't be transported very far before it starts cooling down.

There's a limit to how far you want to be transporting that from a weight, but also that especially that hot asphalt mix that needs to stay hot from where it's mixed all the way to the the job site.

So, [snorts] it actually has vertical integration in the business. It's been acquiring these hot asphalt mix companies. I mean, these aren't going for, you know, 30 time sales.

You can get these for fairly attractive prices, and it makes its business better. it is able to lock up more business because it it has the whole ecosystem where the roads need to be paved.

So, is it fair to say that this would be something of a roll up in the road business? 100%. And the CEO or the formation of the company actually has more private equity roots um kind of a operator coming together with somebody with investment banking experience.

They kind of combine the two to create this company and they do they roll up a lot of money goes every single year to acquiring these small mom and pop businesses. They also have acquired parts of the businesses from like even Vulcan Materials here recently.

I believe it was in the Houston market. They acquired some of their plants to better serve their road paving uh objectives in that in that Texas market.

I do like the tailwinds. I like the the story of the tailwinds here. The rollup market. you maybe have a little bit of an expansion in margins because those margins are not going to be super high just looking at those quickly.

4.1% net margin even the IBIT margin about 13.7%. So potentially if you are able to get some efficiencies there but that is still a pretty competitive market. So you're you're you're kind of playing the macro there.

Again you're you're right in the same zone here with all the the price for all these companies on a forward basis about third earnings is where the stock is trading for.

Number two, I got to go with Construction Partners just because that maybe I can wrap my head around that business a little bit more. Again, I like the macro. I'd love to get this at a much better price.

This is one of these companies that I would love to get it at half the multiple that it's trading for right now. So, maybe it's just a watch list company at this point. Maybe not even building some sort of starter position.

It's just one, hey, this this should be on my radar because the tailwinds are not one year, two-year tailwinds like we maybe have in the memory market. It's generational tailwinds, if you will.