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No. of Recommendations: 1
I still like EXP. The low production cost and incremental increase in production in both wallboard and cement, continuing share buy backs, increasing dividend, well situated geographically to weather the current housing downturn --- all suggest EXP will do well as long as the current management stick to its course.

Basically, I think EXP's cement income will be much larger than expected in coming year, partly due to increasing production at the Illinois plant replacing the expensive imports and partly due to the rising price. My guess is that increased earnings at cement side can make up the inclining earnings at the wallboard side to a significant extent in coming fiscal year.

Another possibility is a take over or merger by other industry player or private equity group. I would be very much against it, even at 30% premium, because EXP could be a great compounding machine for an owner.
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