USG (USG)

Add a New Bears Reason Company: USG (USG) Current price: Headline: (100 character max) Analysis: Cancel 50% agree 2 votes edit USG limited to domestic sales Top Contributor: Jay | Created when NYSE:USG was $38.93 | Edit | History Many U.S. companies these days hedge against the particular up- and down-swings of the domestic economy by going global. Unfortunately, USG does not have that option. Drywall is very bulky (have you ever tried Sheetrock-ing a wall?) and cheap on a per pound basis making it non-ideal to ship overseas. (100 character max) Cancel 0% agree 1 votes edit USG has high exposure to residential and commercial real estate markets Top Contributor: Jay | Created when NYSE:USG was $38.93 | Edit | History Few companies--including Home Depot (HD) or Bank of America (BAC)--are as exposed to a downturn in U.S. housing as USG Corporation. The company makes virtually all of its operating profit (70%+ in 2006) from drywall sales, which are used in new home and office construction. The company may have stellar operating improvements and Warren Buffett as the major shareholder, but the Oracle of Omaha got in at $17 per share in 2000. Around $40 per share these days, USG's stock has not priced in the entire effect of the subprime lending crisis yet. Wait for the price to go lower if you have an appetite for gypsum, the main component of drywall. (100 character max) Cancel

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