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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Spekulatius who wrote (19859)	10/14/2004 10:51:59 PM
From: E_K_S	Read Replies (2) \| Respond to of 78618

Hi Spekulatius - USLM is an interesting proposition. It is trading quite above it's five year low of $4 so I may be late to the party. I like their business including the turn around story and the barriers to entry to their business (i.e. permit requirements you described in your previous post). Are their any hidden assets in their land or mineral holdings? Specifically I see that there may be potential royalty earnings from their Barnett Shale site. Is this substantial and has it been imputed in the price or their book value? If we do get a slow but growing economy and interest rates remain low, demand for their product(s) should grow over time. Their recent restructuring of their debit should help improve their cash flow which will eventually improve their earnings. The PE is at 9 which qualifies it in the value sector but I am a bit skeptical as to how far this and the housing/remodel boom will last. I will watch this stock as I need exposure in my portfolio to this sector. I was considering CEMEX the Mexican cement producer but their stock price is too high and not at value at current levels. Perhaps USLM is a candidate. I was hoping for a dividend paying stock but noticed that the last one noted on Yahoo for USLM was in 05/03. EKS