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Masco Corporation Message Board

  • fattymcbutterpants2001 fattymcbutterpants2001 Feb 8, 2003 2:16 PM Flag

    This stock is a disaster...

    Their purchase of BSI Holdings sure was poorly timed. I wonder what kind of asbestos exposure they're looking at? Remember the good old days when they sold nothing but faucets? But it's never enough, don't ya know.

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    • Disaster or a trick pulled on them. Many individuals got instant riches from this purchase. I hear Masco was set up from the start and the insiders tricks worked in a big way. Go check their changes of

    • Fatty: I am very curious why you would mention BSI Holdings and the dreaded "A" word in the same sentence? Are you just fishing or do you have something to say? Besides did'nt Masco already own two similar companies to BSI..........Gale and Cary? Why the knock on BSI? Are you just speculating? My guess is you are just wanting to spread nonsense? Babe

      • 2 Replies to thebambino60
      • I also wondered about the BSI reference, and have begun to dig back into the history of BSI.

        Some say that Masco did not do its homework on the Behr acquisition - and did not protect itself adequately with recourses to owners of Behr. I recall reposting an extremely cautionary post by someone on this board written way ahead of the court findings - which, as you know, Masco delayed releasing for nearly a week.

        The Chairman of BSI before its acquisition by Masco, Larry Solari, is now just a Masco "Executive". However, he has been on the board of Beazer Homes since 1994 - and Beazer, a major homebuilder, appears to compete somewhat with Masco Contractor Services. Therefore Beazer an unlikely MCS customer.

        Probably a different story with Detroit-based Pulte, the nation's largest homebuilder, which co-sponsored with Masco that puff piece announced about a week ago predicting 20 years of stellar growth for homebuilding, hence, presumably, for Pulte and Masco.

        "The Housing Boom: Another 20 Years of Growth" was released at the recent International Builders Show in Las Vegas - and takes issue with economists who see a major residential downturn ahead.

        In researching, I noticed the following interesting Key Stock Statistics from S&P:

        Beazer - Value of $10,000 invested 5 years ago (as of 12/31/02) - $27,586

        Pulte - Value of $10,000 invested 5 years ago (as of 12/31/02) - $24,056

        Masco - Value of $10,000 invested 5 years ago (as of 12/31/02) - $ 8210.

        [AS OF 2/8/03 - $ 7370]

      • No nonsense to the fact that the BSI individuals got extra rich from their insider help in convencing Masco to buy them. Lots of tricks by tricksters. In other words, a set up.

    • This stock a disaster? How can you say that? Look below at its extraordinary record.

      Here's how Masco outsiders, the real Masco investors - who bought their stock with their own real money - and held it - have done over the last 10 years (February 7 closing prices):

      Year $ Price

      2003 $ 17.79
      2002 $ 25.50
      2001 $ 23.48
      2000 $ 18.75
      1999 $ 30.75
      1998 $ 25.47
      1997 $ 17.19
      1996 $ 14.50
      1995 $ 12.44
      1994 $ 18.88
      1993 $ 17.31

      In ten years, Masco stock is ahead by $0.48 (forty-eight cents) - that's nearly 3%. Isn't that just great! The Dow, after the pounding it has taken, is ahead by 130%. In other words, the Dow is 2.3 times what it was in 1993 (7864 vs 3437). And Masco is ahead by 3%.

      I think most of us would settle for growth equal to the "depressed Dow" - or a price of $40.19 a share for Masco - (2.3x$17.79).

      Masco insiders sure have shown a lot better judgement (and market timing) than most of us Masco long term investors. And those clever insiders have dumped rather often - and as Forbes recently pointed out - at high prices.

      Look for highs, and around them you'll find Masco insiders dumping - bigtime. Dumping stock they got for peanuts via the lush options they awarded themselves.

      Stay tuned, and I will cover Insider Triumphs that took place around the times of the Great Split of '98, the Great Acquisition Binge of '99, the short-lived Great Last Fling of '99, the Great In-and-Out of '00, and the Semi-Great Pump Job of early '02.

      All of what I write, sc2a19, my optimistic friend, is the result of "fascination". It is, as I have said before, my fascination with Masco that has caused me to continue to own Masco stock for a very long time. I can afford to hold a couple of losers. How many companies do you know of that have done what Masco has done - to so many - for so long.

      I don't watch many TV dramas or films - other than Law & Order - instead, I watch Masco - and I watch carefully the extraordinarily profitable, self-serving, award-deserving performances of its group of insiders.

      As you say, there are 2 sides to every story - but until recently only the sanitized and revisionist Masco side was being aired - or should I say touted. But now, through a variety of sources, the other side (the facts and the truth) is being exposed for consideration and further analysis by stockholders and potential stockholders (and others who may be interested).

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