CAPS Rating: 4 out of 5

The Company through its subsidiaries is a manufacturer and distributor of building materials, producing a range of products for use in new residential, new nonresidential, and repair & remodel construction, including products used in industrial processes.


Player Avatar OptionXpert (55.20) Submitted: 5/28/2010 1:41:07 PM : Underperform Start Price: $21.81 USG Score: +49.72

April's "New Housing Starts" report wah s the last good housing report for 2010.

If you don't take profits today, you'll not regret it in July. Today's report looked good, but it was based on outdated April data. Comically BB&T and Mark Zandi just came out with a buy recommendation by an analyst who doesn't grasp the deep-seated problems in the drywall or housing industry. The Banking mortgage industry is vitually dead in the water. Then you have Freddie and Fannie insolvent with a lot of bad mortgages and now the FHA is requiring a bailout, because their 3% mortgages are collapsing. Who is going to create mortgages for new home sales in the future.

The biggest problem is there are 5 major drywall manufacturers all trying to sell to a dwindling customer base. In May volume has dropped significantly and the price increases arey eroding.
This below article is really funny, remember Zandi's asinine claim that the housing crash is over on 6/16/10 when the "New Housing Starts" report for May 2010 is released and they realize that housing again tanking.
MarketWatch News Break: Zandi declares housing crash over, sees deals

By MarketWatch
5/26/2010 11:19:02 AM

Now is the best time to buy a home in a quarter-century, thanks to low mortgage rates, low prices and special incentives. So says Mark Zandi, chief economist at Moody's He says the housing downdraft is over after several terrible years.
Mark Zandi, chief economist at Moody's wrong too.

Builders boosted by home sales, Toll results

By John Spence MarketWatch
5/26/2010 11:02:21 AM

BOSTON (MarketWatch) -- The SPDR S&P Homebuilders ETF rallied 3% Wednesday morning following a report from the Commerce Department showing new-home sales in the U.S. jumped about 15% in April to the highest level in nearly two years. Toll Brothers Inc. rose 3% after the luxury residential builder reported a smaller quarterly loss and a 41% rise in net contracts. Standard Pacific Corp. and Hovnanian Enterprises Inc. both added more than 6% in recent action.

Member Avatar dcrednek (80.43) Submitted: 10/19/2010 11:27:08 AM
Recs: 0

First respectable comment I've seen for quite some time posted on USG as a common equity investment.

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