It has come to our attention – and really, whose attention hasn’t it? – that Kanen Wealth Management has decided to allocate a not-insignificant sum (approximately $8.83 million, give or take a few lost decimal places – which, frankly, are easily lost in the vastness of the financial universe) to shares of Trex. Trex, for those unfamiliar, is not a particularly fearsome dinosaur, but a manufacturer of composite decking. Yes, decking. (One wonders if they also do sails. It’s a thought.)
This acquisition of 250,000 shares, representing 2.68% of Kanen’s reportable U.S. equity assets, is…interesting. It’s like deciding the best way to predict the weather is to study the migratory patterns of garden gnomes. Not necessarily wrong, just…unconventional. And potentially requiring a very large collection of gnomes.
As of the latest accounting (which, let’s be honest, is always a slightly optimistic fiction), Kanen’s top holdings look like this:
- NYSE:COMP: $67.59 million (20.9% of AUM)
- NASDAQ:ALLT: $45.04 million (13.9% of AUM)
- NYSE:BNED: $30.81 million (9.5% of AUM)
- NASDAQ:REAL: $29.34 million (9.1% of AUM)
- NASDAQ:INSE: $24.84 million (7.7% of AUM)
Now, let’s briefly examine Trex itself. The company, as of February 18, 2026, was valued at $4.49 billion – a number that, when you think about it, is composed entirely of hypothetical future picnics. Here’s a breakdown of their key metrics:
| Metric | Value |
|---|---|
| Price (as of market close February 18, 2026) | $41.89 |
| Market capitalization | $4.49 billion |
| Revenue (TTM) | $1.18 billion |
| Net income (TTM) | $197.88 million |
Trex specializes in composite decking, railing, and fencing – essentially, the things one builds to avoid looking at the neighbors. They generate revenue through manufacturing and distribution, and apparently, licensing agreements for branded accessories. (Branded what, exactly? Deckchair cushions shaped like miniature Trex dinosaurs? One can only speculate.) They serve both residential and commercial markets, distributing through the usual channels: wholesalers, lumber dealers, and the twin behemoths of home improvement, Home Depot and Lowe’s.
The company, with over $1.18 billion in trailing twelve-month revenue, operates at scale. They’ve adopted a vertically integrated model and an extensive distribution network. It’s a remarkably efficient system, assuming, of course, that the universe doesn’t decide to rearrange the laws of physics during the shipping process.
So, what does this all mean for investors? Kanen, it seems, is betting on a housing sector turnaround. A bold move, considering the sector has been behaving rather like a particularly stubborn mule for some time. They likely anticipate that the current situation – low inventory, high prices, and sluggish sales – will eventually, and probably quite reluctantly, change.
The expectation is that interest rates will fall, mortgage rates will follow suit, and supply will increase. All logical assumptions, of course, assuming logic has any relevance in the grand scheme of things. This, naturally, would benefit Trex.
Trex, it should be noted, continues to innovate, with 25% of its sales coming from new products. They’re also increasing spending on research and development – presumably to create decking that can withstand a direct hit from a meteor. Even with a subdued housing market, the company’s initiatives have sustained growth, with third-quarter sales jumping 22% year over year. This positions them well for a potential housing boom. Kanen may have initiated this position for that very reason.
However, there are other ways to play a housing recovery, including investing in those aforementioned big box retailers. Trex, though, offers a more direct route to potential gains. The company will next update investors with its fourth-quarter and full-year financial report on February 24. Interested parties should look for signs of sector momentum from management to determine if the timing is right. Or, you could consult a psychic. The odds are probably about the same.
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2026-02-19 17:22