OT: Katrina play. Starting an exploratory position now in Louisiana-Pacific(LPX).
To my mind, an iffy value play - psr is high compared to past years, but price/bk is okay, just not particularly attractive compared to past years. In past two years he company has seen relatively high profit margins; book value has increased. This is a cyclical business apparently, and now with Katrina, maybe business will continue to be strong.
I assume LPX, being in Louisiana, will have oriented strand board plants in or near the rebuilding areas.
I assume OSB is important for rebuilding. "OSB, a structural panel product, is among the building products most needed in the period following a natural disaster," according to LPX.
biz.yahoo.com
I assume (without having any facts) that demand for OSB and other building materials from LPX will drive profits for LPX, and that that's not already reflected in the current price of the stock.
aside: Descriptions of OSB and plywood and the differences between them:
home.howstuffworks.com
aside: Fwiw, I'm still holding shares of WY and IP too.
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