Shares of Trex (TREX) are up over 50% so far in 2016 as investors are finally finding out about the growing popularity of decks made from recycled plastic. "More people are adding decks to their homes, or they are tearing down their existing wooden decks and replacing them," said Jim Cline, CEO of Trex. "We are 95% repair and remodeling and only about 5% new home construction." Trex is coming off yet another record quarter. Net sales for the company's second quarter of 2016 were $146 million, 7% above the $137 million reported for the comparable period in 2015. The company reported net income of $23.3 million, or $0.79 a diluted share, up 24% and 36%, respectively from net income of $18.7 million, or $0.58 a diluted share, reported the prior year. Cline said Trex is planning to expand its international presence. International sales currently comprise less than 10% of total revenues.
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