USG incorrect story; stock halted
Friday June 1, 1:46 pm Eastern Time
NEW YORK, June 1 (Reuters) - Reuters on Friday incorrectly reported that building products manufacturer USG Corp. (NYSE:USG - news) filed for Chapter 11 bankruptcy protection.
The item was wrong and has been withdrawn. The company has made no such filing.
The company filed for voluntary bankruptcy protection in 1993, and emerged in 1994.
USG shares have been halted on the New York Stock Exchange for news dissemination.
-----------------------------------------------
biz.yahoo.com
50% of the float is being shorted (a sign of a big POS); But Buffet is a 10+% owner and he avg down @ $15 last Nov.
High debt/euqity ratio (1.5); high book value ($11), but low on cash (~0.8/sh). No buy rating, but sell/hold by all 8 analysts, though these analyst expect USG to earn $2+ in 2002! Tough to value here.
Probably an interesting stock to watch the bears vs Buffet.
USG stayed down even after the Chapt 11 BK news were denied Friday.
finance.yahoo.com
-------------------
USG insider trades
biz.yahoo.com
17-Nov-00 BERKSHIRE HATHAWAY INC
biz.yahoo.com
BUFFETT, WARREN E
biz.yahoo.com
-------------
biz.yahoo.com
May 01, 2001
USG CORP (USG)
Quarterly Report (SEC form 10-Q)
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF RESULTS OF OPERATIONS AND
FINANCIAL CONDITION
RECENT DEVELOPMENTS
The first quarter of 2001 for USG Corporation ("USG" or "the Corporation") was marked by further developments relating to the impact of declining prices and profits for gypsum wallboard in the United States and increasing costs of asbestos-related litigation. Two more companies, WR Grace and GI Holdings (formerly GAF), which are major defendants in many of the asbestos-related cases in which the Corporation's United States Gypsum Company subsidiary is also a named defendant, have filed for Chapter 11 bankruptcy protection. In early April 2001, Standard & Poors revised its credit rating for USG's senior unsecured debt from BBB to BB- with negative outlook, citing the uncertainty of future asbestos-related costs as the principal reason for this change
...
"MARKET CONDITIONS AND OUTLOOK
As discussed above, the excess supply and increased competition have led to significant declines in market prices for gypsum wallboard. Pressure on gypsum wallboard pricing is likely to continue until more capacity in the industry is closed and/or demand increases.
USG is currently forecasting U.S. housing starts in 2001 to be down slightly from the 1.593 million units in 2000.
The repair and remodel market accounts for the second-largest portion of USG's sales. Because many buyers remodel an existing home within two years of purchase, opportunity from this market in 2001 is expected to decline as sales of existing homes in 2000 were 5.030 million units, down 3% from the record level of 5.197 in 1999.
Sales of USG products to the new nonresidential construction market are expected to be down slightly in 2001. Future demand for USG products from new nonresidential construction is determined by floor space for which contracts are signed. Installation of gypsum and ceilings products follows signing of construction contracts by about a year. Floor space for which contracts were signed was down 1% in 2000. " |
