All they have to do is lose 6 million and their shareholder equity will ne NEGATIVE and they'll be INSOLVENT. They lost 13 million last quarter and 29 million the quarter before. I will not be wrong this time and with any luck they'll report a larger loss then last quarter and the stock will plummet.
Amazing they will have lost over 2 billion in equity in just a few years.
PS: IBM missed badly tonight, So tomorrow should be a real bad day, Unless you've been buying FAZ. of course.
Probably, I am short the S&P using FAZ and I've been buying more all week. When the Cypress run on the banks starts watch out. Bloomberg TV was saying that Russia is going to suck their money out the first chance they get. I hope your all hedged for the drop that's coming. Even though the US economy and housing look healthy, contagion is about to hit Europe when Cypress banks collapse. If you lived in Italy or Spoain would you leave your money in the bank?
It's highly likely that USG will report larger loses in this winter quarter and also become insolvent. What will happen to the stock price then. With gasoline price soaring homebuyers will slow weekend drives to look at homes. With the recent storm "Q" hitting the Northern states and the heavy rains in the south has again slowed homebuilding this week.
Get ready to buy USG at amuch lower price in April.
No, I never broke down the wallboard numbers even when I worked for NGC. I'm more about economic and weather trends that will impact business activity.
Here's the definition of insolvenecy that USG is about to define.
insolvency n. 1) the condition of having more debts (liabilities) than total assets which might be available to pay them, even if the assets were mortgaged or sold.
Housing starts showed some winter volatility in January by declining and showing possible lingering effects from Hurricane Sandy. However, permits continued to trend upward at a moderate pace. In January, housing starts declined 8.5 percent, following a sharp rebound of 15.7 percent in December.
The heavy snow in the North East has knocked 2 or 3 weeks off the winter building quarter. So SANDY rebuilding will be postponed, probably till March. I has also been a very wet winter, which has slowed foundation excavations of commercial and residential properties.
So all USG has to lose is another 19+ million and they'll have a negative equity. It's Hard to believe this company once had 2.2 billion in equity. I guess you can chalk that up to great management (?)
PS: my only alias is QUICKMOVESMILES
I don't see USG benefiting from Sandy rebuilding until April depending how mild the winter is. However the other 4 competitors will be also pricing agressively for that Sandy business.
Tomorrow I expect to see USG report a larger the expected loss in the 50-75 million range and to report full year losses in excess of 160 million. They will probably not become insolvent until the first quarter numbers are released.
I expect a bigger miss because the intial drop off in business caused by Sandy.
I'm touched you guys really missed me.
I'll be back at the end of this qtr or maybe next when USG becomes insolvent. They still have too much competition to become profitable. Anybody know how many quarters they've now lost money.
Is it 21 or 22 quarters now of multimillion dollar losses? They once had a net worth of 2.2 billion and now their networth is only 109 million. They are doing better they've only lost 113 million so far in 2012. I estimate they'll lose a little over 150 million for the full year.
They'll get little help from Sandy rebuilding during these winter months, unless it's another mild winter.
My forecast is the market has peaked today and will now tumble HARD coming into Feb 2013 as the Republicans dig in hard against Obama's over spending.
I've started buying FAZ yesterday and today. We'll see how I do buy the middle of Feb 2013 after the market plunges.
Sentiment: Strong Sell