Usg Stock Analysis

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Company Profile as of 2/15/2014
Company Profile as of 2/15/2014
Step 1: USG Corporation (USG)
Financial Analysis By: Brendan Carr- Materials
Step 1: USG Corporation (USG)
Financial Analysis By: Brendan Carr- Materials

Source | Target Price | Recommendation | Bloomberg | $37.86 | 10/6/1 | Capital IQ | $36.73 | BUY | Siena College | $36.87 | BUY | Yahoo Finance | $36.50 | BUY | Source | Target Price | Recommendation | Bloomberg | $37.86 | 10/6/1 | Capital IQ | $36.73 | BUY | Siena College | $36.87 | BUY | Yahoo Finance | $36.50 | BUY |

Step 2: Recommendation: Buy

USG Corporation is currently trading at $34.26 and has a market capitalization of $4.7 billion. I recommend a BUY because of the
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The company operates in three reportable segments: North American Gypsum, Worldwide Ceilings, and Building Products Distribution. It offers gypsum and related products, including gypsum wallboards, joint compounds, cement boards, gypsum fiber panels, glass mat sheathing, glass mat panels, gypsum fiber, and glass mat panels. The company’s gypsum products are used in various building applications to finish the interior walls, ceilings, and floors in residential, commercial, and institutional construction, and repair and remodel construction. It also produces gypsum based products for agricultural and industrial customers for use in various applications including soil conditioning, road repair, fireproofing, and ceramics.

Warren Buffet
On November 28, 2013 in the midsts of the financial crisis, Warren Buffet, acquired $300 million in USG senior notes with an interest rate of 10% a year, convertible to common stock at $11.40 a share. When Buffet acquired the notes in 2008 it was seen as a vote of confidence for the struggling company. This transaction proved USG with long-term capital that significantly improved their financial flexibility through the steep recession in their primary markets. At the time USG stock fell around $6, however is now up over 470% to $34.26, well over pre-2008 levels. Before converting the notes, Buffet owned 17,072,192 shares; since converting his notes his holding stands at 43,387,982 shares.

Emerging

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