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

To: E_K_S who wrote (19861)	10/14/2004 11:27:54 PM
From: Spekulatius	Respond to of 78618

yes USLM has been on a tear recently but I still think it has further to go. The dividend was suspended because in the bleak years of 2002/2003 USLM had to incur debt to upgrade their facilities (as they stated their facilities were outdated and they lost customer because of that). Because of their alread weak balance sheet and operating results they had to tak on 14M$ of debt at 14% interest rates (the sub notes). Their 1st priority needs to be to pay off this loan which is what they are doing right now: The Company made a $3,000,000 principal prepayment on the Sub Notes on May 7, 2004. Pursuant to the terms of the Sub Notes, a $30,000 prepayment penalty was also paid on $1,500,000 of the principal prepayment. On July 29, 2004, the Company made another $3,000,000 principal prepayment on the Sub Notes. No prepayment penalty was required for the July payment. . The remaining (recently financed) revolving debt to Wells Fargo has an effective interest rate of less than 6%. Once the subordinated debt is gone, the load convenants should be gone and the company should be able to pay dividends again. According to my notes the future projected capital outlays are less than depreciation (due to the just completed moderization program) for a couple of years which should mean a generous FCF going forward. Again, it's a dinky little company but it'sperating in a nice little niche, profiting from the commodity boom and it does not yet gained any recognition.

To: E_K_S who wrote (19861)	12/15/2004 10:11:43 AM
From: Spekulatius	Read Replies (1) \| Respond to of 78618

re CEMEX - WSJ article 12/14/04 Ship endures troubled Waters in Mexico Interesting article about a cement cargo ship and it's cargo set aground in Mexico by bureaucracy that is influenced by Cemex. As i mentioned before Mexico's cement prices are some of the highest worldwide, which is amazing given Mexico's access to cheap energy and the fact that it is still a 2nd world nation. Cemex is protecting it's home base with more than just it's high market share.