USG
I recall reading an article in the last year or so that Buffet had received permission to not file reports on his positions for one year after they were acquired or sold due to the volatility his interests tended to cause. It also might be worth noting that corporate raider Carl Ichan took a large stake in FMO at an average price of $17 a share earlier this year. The USG 8K filed 11/17/00 should be required reading for anyone feeling bullish on the company. If anyone can think of a reason why a company would refuse to allow their employees to invest in the Company's stock for their retirement accounts, which is good news to private investors, I'd like to hear it. With interest rates sky high and the usual winter slow down in construction added to a shaky economy, I find it a little hard to imagine this as being a good time to start a position in building materials. My guess is anyone buying USG right now is just helping Warren to keep a lid on his tax loss selling.
From form 10Q filed 11/8/00:
<<<The U.S. market for gypsum wallboard transitioned from short supply, as experienced in 1999, to excess supply in 2000. Also, new industry capacity is being added in 2000 and 2001. As a result, management anticipates continued
softness in its gypsum wallboard results for the remainder of 2000 and into 2001.>>>
and:
<<<One of the Corporation's subsidiaries, U.S. Gypsum, is a defendant in asbestos lawsuits alleging both property damage and personal injury. In the third quarter of 2000, U.S. Gypsum recorded a charge of $27.0 million, reflecting new filings during the quarter. This compares to a $20.0 million charge taken in the third quarter of 1999. Accrued asbestos charges for the first nine months of 2000 total $77.0 million compared with $62.5 million for the same period in 1999. Asbestos charges to results of operations were higher in 1999 and 2000 than 1998 because the estimated cost of resolving cases pending during 1998 will, when expended, consume all of U.S. Gypsum's remaining insurance; as a result, the estimated liability from new case filings is currently being charged against reported earnings.>>>
From form 8K filed 11/17/00:
<<<In view of these external factors, and the resulting potential for further uncertainty in the price of USG Stock, participants in the USG Investment Plan will not be allowed to make future contributions to the USG Stock fund until further notice. If you have invested in the USG Stock fund, you should evaluate the appropriateness of USG Stock in your investment portfolio given current market conditions and your own personal risk tolerance.>>> |
