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USG Corporation Message Board

  • Dchin62973 Dchin62973 Mar 2, 2012 12:36 PM Flag

    RE: Warren Buffet and USG Corp.

    According to SEC Filings, Warren Buffet's BRK.A owns 16.7% of USG from a couple of years ago.

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    • WEB bought at $14 or so...and later, he didn't sell at $100.

    • So wrm66 is Quic also or do you just answer for him? Quic is one weird person. I just don't get the whole alias thing. All I can think of to say is....Why??? It makes no sense. Someone please explain to me why anyone does this. There are some really odd people in this world. Thank god I am for the most part normal.

    • Background is making money. USG can raise the price of wallboard all it wants but it will lose vast amounts of money over the next three quarters. Yea, contractors order when they need it and don't store it. You must have a PhD to come to that conclusion. Only the construction business works on JIT. I'll have to pass that along to Apple, Intel and GM ...what a revelation.

    • Quick

      You sound like you know something about the wallboard business. Are you in the wallboard business?

      USG is not losing money due to competition, it is solely the volume. The price of wallboard did what it always does when the volume drops, it dropped. The last time it dropped that low was about 10 years ago and Georgia Pacific said they had seen enough and started shutting down plants. Low and behold, the price came back up.

      The prices are up in 2012 and if you really knew this business you would know that "builders" have their wallboard shipped to their projects when the project needs it. They do not "stock up" because builders dont have warehouses and you cant leave the wallboard outside at a job site because it would get wet. Also, the manufacturers were monitoring the distributors in November and December to keep them from "stocking up". And on top of that, wallboard takes up a lot of space and must be kept dry so where is all this free warehouse space to "stock up" all that wallboard?

      The shippments are rolling out the door and at a much higher price and that will have a major impact on the bottom line in the 1st Qtr.

      It does not mean USG will make a profit but it does mean the bottom line should be much better than recent Qtrs.

      Tell me again what your background is in this business and why you think you know so much?

    • It will not be good. 2012 will suck out all the cash and leave them with loans to live from. It's a $6 stock. Just a matter of time when the MM's bring it down, establish a bottom, cover their short positions, bring it back up and short it some more. Housing rebound is years away as far as a return to profit for USG.
      But then again lets not forget that IV of $1 Billion. Where is that guy???? Must be consulting for Obama.

    • "1st, what has been happening, quarterly, has no bearing on what will happen 1st Qtr 2012"

      Your joking right, after 19 quarters of losses. You seem to believe USG is the only player out there. It's not just slow housing that's killing USG it's COMPETITION. Those quarterly 100 million dollar losses reflect massive loss of market share.

      You really don't believe that guy from JPM who said the price is sticking. You fail to realize, by setting that price increase for Jan 1st they stole sales from Jan & Feb, because all the builders built up inventory in December at the old price. If my assumptions are correct then USG's losses will be closer to 100 million then to 75 million.

      By August USG will have a negative shareholders equity and will be trading in single digits. Housing always slows down in the summer and it will be even slower if gas prices are at $5 this summer.

      "I think by August it could be between $20-$30"

      There's not a chance under the sun, that USG's stock will be trading at $20 this August when their Equity is negative and they're still suffering from massive losses.

      You keep loading up on those Calls and I'll keep buying my Jan 2013 Puts. When we get to August we'll decide who made the smarter trade.

      I hope this changes your mine and do yourself a favor and sell all your calls just before they release their 3/31/12 financials in April. (or you'll wish you had).

    • 10 month old article, by Juan, nailed Buffet purchases
      please see great info below: no links - NO SCAM!!!
      easy read...

      Buffet and his United States Gypsum (USG) purchases
      Posted on May 29, 2011 by Juan Ramon Velasco Barros

      2000 Nov 28 – LA Times: Chicago-based USG’s shares jumped $4.44 to $19.38 after Berkshire disclosed its investment of 6.5 million shares in a Securities and Exchange Commission filing…. USG’s falling shares have also attracted an investment from the family of German wallboard magnate Nikolaus Knauf. A holding company affiliated with the Knauf family last month reported acquiring a 9.9% stake in USG…. Berkshire’s 14.98% stake is just under a threshold that would trigger USG’s takeover defenses if an outside investor buys 15%…

      Accumulated total: 6,500,000

      2006 August 2 – SEC 13 D/A:

      The closing under the Equity Commitment Agreement, as amended, occurred on August 2, 2006, pursuant to which NICO acquired 6,969,274 additional shares of Common Stock of USG (the “Additional Shares” and, together with the Original Shares, the “Shares”) for $40 per share, the exercise price in USG’s rights offering. The Additional Shares consisted of 6,500,000 Shares underlying rights distributed on the Original Shares, and 469,274 Shares underlying rights distributed to other stockholders that were not exercised in USG’s rights offering.

      Accumulated total: 13,469,274

      2006 August 8 – SEC 13 D/A:

      Date Purchased Shares Acquired Price Per Share
      8/02/2006 692,500 $45.46
      8/03/2006 26,900 $45.71
      8/07/2006 82,900 $45.80
      8/08/2006 1,200 $45.81
      8/09/2006 587,100 $45.98

      Accumulated total: 14,859,874

      2006 August 24 – SEC 13 D/A:



      Date Purchased Shares Acquired Price Per Share
      08/10/2006 118,500 $46.01
      08/11/2006 23,500 $46.03
      08/21/2006 567,218 $45.92
      08/22/2006 390,200 $45.97

      Accumulated total: 15,959,292

      2006 October 6 – SEC 13 D/A:
      Date Purchased Shares Acquired Price Per Share
      08/23/2006 734,700 $45.90
      08/24/2006 7,000 $46.03
      10/04/2006 371,200 $46.10

      Accumulated total: 17,072,192

      Average price: (6500000×15 + 6969274×40 + 692500×45.46 + 26900×45.71 + 82900×45.8 + 1200×45.81 + 587100×45.98 + 118500×46.01 + 23500×46.03+ 567218×45.92 + 390200×45.97 + 734700×45.90 + 7000×46.03 + 371200×46.01)/17,072,192 = 31.72 US$/share

      Supposing that his 250 million convertible debt at 11.4 per share are included that adds 21.93 million shares and his total shares would be on a fully post conversion diluted basis 17.07+21.93 millions at an average price of 21.93×11.4+31.72×17.07/(17.07+21.93) = 791.46÷(17.07+21.93) = 20.29 US$/share

      Note that there are currently 103 million shares add to that the ones corresponding to the 350 million convertible debt at 11.4 from both Buffett and Pram Watsa and you get 133.7 millions on a fully diluted basis. Buffett owning 39 millions of them bought at 791 million dollars, so he actually bought 29.16% of the company on a diluted basis @20.29 dollars per share. One thing we can say is that he has been very persistent !

      Also note that the total number of USG shares in the year 2000 was 43.5 million and the USG had no debt... almost.

    • That percentage doesn't include what he would own if the converts are exercised...

 
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