Thesis
Q1-19 showed that Trex (TREX) continues to see strong demand for its residential decking products.
However, the company experienced some operational problems in Q1 that negatively impacted gross margins and hurt the company's ability to meet demand for its products.
On top of this, escalation of the US trade war with China could be a sign of economic problems that may affect consumer sentiment. A downturn in consumer sentiment would be a negative for Trex as the company is dependent on a strong consumer who is willing to make the sizable discretionary