USG Corp (USG)

While I'm confident that this stock will outperform over the next 3-5 yrs, I do not believe it will outperform it's competition. USG has, a few years back, implemented a strategy that is currently blowing up in their face. They started selling their product to themselves at a high discount, which in turn provided them the ability to charge less for their building contracts. Well, if you’re their building competitor, but you buy your building materials from USG, are you going to be happy that the company providing you materials is actually driving you out of business with prices you can’t match??? So the obvious response is, to stop buying supplies from USG. So while USG’s building contracts are expanding, their raw material purchasers are dropping quickly. This is correctable, but it will put them behind their competition and we’ll have to see how stubborn their management is. Go with another competitor, one that provides a dividend if possible.