If it wasn't for the terrible shape of the homebuilding industry OC would be in the $40's already. That is the one thing that is holding this stock back. I personally still think OC is not a publically traded company this time next year. Their stock is too cheap and their tax losses are an enormous benefit.
08:44 AWI Armstrong World Industries auction under way - TheDeal.com (50.83 )
TheDeal.com reports Kohlberg Kravis Roberts has emerged as a favorite to acquire Armstrong World Industries, a building products maker that emerged from bankruptcy protection last Oct. Books for Armstrong, which makes floors, ceilings and cabinets, recently went out, four sources said Thursday, March 15. Private equity firms, such as the Blackstone Group, Carlyle Group and Apollo Mgmt, are expected to vie for the co. Bids are expected to come in just shy of $3 bln, sources said. A sale could be complicated by the fact that the co is two-thirds owned by an asbestos victims' trust. KKR is seen as the early favorite because it already owns Tarkett, a distributor of flooring products. It is possible the co may opt to be sold in two pieces, dividing its floor and ceiling products, in which case the odds of strategic buyers prevailing would be higher. USG Corp. (USG) is a possible bidder. However, if Armstrong chooses to be sold as one co, the most likely buyer will be a private equity firm, one source said.
Agree. But, after reading the Edgar information, it does seem that they do live or die on the housing market.
Minus a melt-down in the market and/or housing, we should see nice growth.
The officers do appear very conservative. The earnings press release was scary, as they did not do a good job selling the positive numbers that they have. It almost led you to believe they were in trouble. But, this conservatism is not a bad thing when it comes to running a company. I would rather be with the conservative group with my money than the guys throwing BS out there.
My earlier statement about the housing thing being overblown is simpply based on the fact that when my neighbors start blaming the sub-prime market for the world's woes and it appears to be the lead story on every business newscast, it is probably overstated.
I think this sub-prime thing is more talk than it will actually turn out to be. With interest rates not heading higher any time soon, the housing market will also settle down.
OC is a solid company trading at a low multiple and the proper trading price (higher) will be reflected over time.
This is the time to buy with the market scared about housing!
before earnings, OC traded just below 31.5 that's where I initiated my position overhere....down about a buck/share right now...not that bad considering the market reaction this week.
can't say I really lost a fortune either recently, sold most of my stocks in the previous months and was only invested for a small amount.
OC is imho a steal around this price, deep in cash, trading < 10 frwd PE right now,...can't imagine the stock will slide much further than we see today..if so I would bolster up my investments overhere.
I was wondering if it's possible that some of the money in the asbestos fund will rotate back into the companies cash balance sometime in the future.
I couldn't agree more.
The valuation here is compelling at any price below $45.
I added more this A.M for a full portfolio position. These post BK plays are money in the bank due to alot of reasons already elucidated on this board.
That said, many of you underestimate the true value to the NOLs, we won't be paying any appreciable taxes for a couple years.