Georgia Gulf Corp (GGC)

racerddt (< 20) Submitted: 2/26/07 11:46 PM : Start Price: $18.96 GGC Score: -46.18

This stock has been pounded thanks to the housing slowdown and the increase in their debt load from their recent acquisition. A loss in the 4th quarter is factored into the stock price which should have a floor under it. As the company divests of some assets from the acquisition and begins generating additional cash flow, debt will be reduced which will command a higher PE and reduce interest expenses over the next 4 years.



As Greenspan pointed out as we get further away from the last recession we could see another one around the corner. Thus the low price should provide protection from going below the 52 week low.

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