Zacks.com Announces that Richard Moroney Highlights the Following Stocks: Barnes & Noble, Flagstar Bancorp, HCC Insurance, Irwin Financial and Masonite International

Business Wire, April 13, 2004

Business Editors

CHICAGO--(BUSINESS WIRE)--April 13, 2004

Small-cap stocks carry a great deal of profit potential, but there's nothing wrong with putting up some defensive measures. Use Richard Moroney's market and stock analysis to decide the extent of your exposure to this space. Read about Barnes & Noble, Inc. (NYSE:BKS), Flagstar Bancorp, Inc. (NYSE:FBC), HCC Insurance (NYSE:HCC), Irwin Financial Corporation (NYSE:IFC) and Masonite International (NYSE:MHM). Click here for the full story exclusively on Zacks.com: http://at.zacks.com/?id=84

Here are the highlights from the Featured Expert column:

Barnes & Noble, Inc. (NYSE:BKS) is engaged in the retail sale of trade books, mass market paperbacks, children's books, off-price bargain books and magazines. These collectively account for substantially all of the company's bookstore sales.

Flagstar Bancorp, Inc. (NYSE:FBC) is the holding company for Flagstar Bank, FSB, a federally chartered stock savings bank. Through its retail banking centers and e-commerce distribution channels, Flagstar attracts deposits from the general public. The institution utilizes these deposits, along with other funds garnered from the secondary market, to originate or acquire loans on a nationwide basis.

HCC Insurance (NYSE:HCC) through its subsidiaries, provides specialized property & casualty insurance coverages, managing general agency services & insurance related services both to commercial customers & individuals.

Irwin Financial Corporation (NYSE:IFC) is an interrelated group of specialized financial services companies. The Corporation, through its five subsidiaries, provides a broad range of consumer and commercial financial services in selected markets nationwide.

Upside Opportunity: Masonite on threshold of robust growth

Masonite International (NYSE:MHM), a leading maker of doors and building products for more than 75 years, is firing on all cylinders. Per share earnings rose 24% on a 10% sales gain in 2003, and profit growth should accelerate in 2004. Improved consumer confidence, coupled with continued low mortgage interest rates, should drive spending on building products. The stock, an impressive performer over the past year, still trades at a modest price/earnings ration relative to expected profit growth.

Masonite has doubled off its $13.80 low price set a year ago. Considering the company's profit momentum and the favorable industry outlook, the stock has further upside potential. The shares appear attractively valued at only 11 times the consensus 2004 profit estimate and 10 times the 2005 estimate. Investors have typically valued Masonite conservatively - the three-year average P/E ration based on trailing earnings is 11.

Assuming Masonite trades at a trailing P/E of 13, which seems fair given the company's expected long-term earnings growth rate of 10% to 15%, the shares could trade up to $32 over the next 12 months.

Learn more about the above-mentioned companies, and make sure to get Richard Moroney's analysis by clicking: http://at.zacks.com/?id=85

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