Louisiana-Pacific Corp (NYSE:LPX)

CAPS Rating: 3 out of 5

A manufacturer and distributor of building products. The Company operates in three segments: Oriented Strand Board; Siding; and Engineered Wood Products.

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Member Avatar FNN31 (31.84) Submitted: 5/21/2014 7:11:43 AM : Outperform Start Price: $14.21 LPX Score: -0.25

This is a pick based on the expectation that housing starts will pick up to the previous estimated levels prior to the tough winter. Stock is beaten down--good entry point.

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Member Avatar paek813 (99.58) Submitted: 6/25/2013 3:43:15 PM : Outperform Start Price: $14.96 LPX Score: -24.63

S&P 5 STAR

This major forest products company produces oriented strand board (OSD), siding, and engineered wood products.

We recently upgraded our recommendation on the shares to strong buy, from buy. As LPX is a major producer of wood products, its results are closely tied to residential construction. We expect improvement in this market in 2013, and OSB prices should stay relatively high due to the increased housing activity and reduced industry manufacturing capacity. During the recent extended downturn, LPX made several moves that improved its financial liquidity and reduced interest costs. We believe LPX has strong profit potential as demand recovers, due to the cost reductions it has made and its underutilized capacity. We view LPX's valuation as compelling at current levels.

Our discounted cash flow model, which assumes low capital expenditures again in 2013, strong cash flow growth over the next several years, an 8.7% weighted average cost of capital, and 4.0% growth in perpetuity, shows an intrinsic value of $23, which is our 12-month target price.

We project that revenues will rise about 25% in 2013, followed by an increase of 12% in 2014. In our view, recent data are showing that a recovery in the housing market is continuing, with housing starts rising gradually, unsold inventories falling, and prices increasing in most parts of the country. Standard & Poor's Economics forecasts a 28% increase in housing starts in both 2013 and 2014. This would likely lead to better demand, and generally high prices for oriented strand board (OSB), in our view.

LPX has made significant cuts in both operating and administrative costs, and we believe it has low-cost manufacturing facilities. We expect that higher housing starts will allow it become solidly profitable both this year and next, following its return to profitability in 2012 after several years of losses.

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Member Avatar goldguru (< 20) Submitted: 1/24/2013 11:59:41 AM : Outperform Start Price: $21.29 LPX Score: -61.07

Housing rebound, lumber rebound, Sandy rebuilding, growing population, low housing inventory

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Member Avatar bIlluminati (30.39) Submitted: 4/18/2012 1:33:04 PM : Underperform Start Price: $8.11 LPX Score: -40.46

Unprofitable, and margins need to rise too much.

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Member Avatar ValueDragonStyle (94.87) Submitted: 7/26/2010 2:08:40 AM : Outperform Start Price: $7.96 LPX Score: +8.30

Louisiana-Pacific Corp (LPX)
A manufacturer and distributor of building products. The Company operates in three segments: Oriented Strand Board; Siding; and Engineered Wood Products.

LPX is down 40% from its 52W high, but up approx. 450% from its March 2009 low.
I like it a lot. My kind of value play.

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Member Avatar RedmondInvestor (< 20) Submitted: 5/11/2010 5:32:44 PM : Outperform Start Price: $9.52 LPX Score: -13.32

As our housing market imporves so will LPX. Also, LPX could also supply China and other developing markets.

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Member Avatar NKVD1938 (24.94) Submitted: 5/6/2010 8:39:11 PM : Underperform Start Price: $10.44 LPX Score: +32.35

No, no, no, no, no. I hate this for the same reasons I hate HOV, SPF, and the rest of those hellacious companies participating in this recent homebuilders' bubble. Well that and the inclusion of the word "Louisiana" in its name. Louisiana, I think, is our version of Greece. Filled with lazy people. Just a dirty, nasty place that thinks it has cultural assets. And which may indeed have those, but a dirty, nasty place nevertheless.

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Member Avatar Timbofittz88 (82.81) Submitted: 3/24/2010 7:15:04 PM : Outperform Start Price: $8.47 LPX Score: +7.72

Late to the party again. There are just too many stocks in this world to keep up with. With the current economy, I feel like a lot of stocks are such excellent buys that I am finding a lot more Green Thumbs than the Red... even if I'm coming in at the 52-week high!

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Member Avatar JohanHansen (76.60) Submitted: 2/16/2010 12:12:34 AM : Outperform Start Price: $7.08 LPX Score: +28.42

3CmbA,200A,C2N

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Member Avatar dkeeneygt89 (30.52) Submitted: 8/18/2009 7:39:48 PM : Outperform Start Price: $5.74 LPX Score: +56.71

P/E is low, decent compared to 52 week high, P/B is low, we have to start building again soon, I think LP is in position to give us a ride.

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Member Avatar Bojac3728 (< 20) Submitted: 6/5/2009 7:54:00 AM : Outperform Start Price: $4.62 LPX Score: +111.76

Could be sold to WY soon.

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Member Avatar bottomtroll (43.31) Submitted: 4/26/2009 3:51:19 AM : Outperform Start Price: $4.10 LPX Score: +128.40

maybe `cause hurricane season's on the way, and folks need more plywood...it's solid and moving

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Member Avatar Afropuffashion (< 20) Submitted: 3/5/2009 11:41:19 AM : Underperform Start Price: $1.68 LPX Score: -613.42

Inverse Ratio: Unemployment UP = Housing starts Down

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Member Avatar sly1948 (91.54) Submitted: 12/11/2008 4:49:24 PM : Outperform Start Price: $1.60 LPX Score: +684.36

This stock is trading at an all time low and they have a market leading product line when the market turns up in any way. This is a great long term play.

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Member Avatar srk85 (< 20) Submitted: 11/30/2008 9:44:32 PM : Underperform Start Price: $2.42 LPX Score: -378.48

No positive earnings on the horizon and only small growth expected even in the long term.

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Member Avatar shoman1 (< 20) Submitted: 3/13/2008 11:00:40 PM : Underperform Start Price: $9.33 LPX Score: -4.41

new housing still week

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Member Avatar jannepro (64.74) Submitted: 1/14/2008 10:17:38 PM : Outperform Start Price: $12.83 LPX Score: -30.81

As soon as the house crisisis over this stockshould take off. Also, lean hogs are at its 5 year low, and several experts see a trend change with prices going up, which will lead to more profits for Louisiana Pacific.

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Member Avatar JimCapel (< 20) Submitted: 1/10/2008 10:09:40 AM : Outperform Start Price: $12.98 LPX Score: -31.60

Dillon says buy

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Member Avatar pramsis (66.25) Submitted: 12/28/2007 9:51:19 AM : Outperform Start Price: $13.36 LPX Score: -26.88

We are not going to stop buying wood anytime soon.

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Member Avatar roedogg (< 20) Submitted: 6/18/2007 11:08:57 PM : Outperform Start Price: $18.63 LPX Score: -55.67

Super Value

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