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URL:  https://boards.fool.com/one-company-that-should-be-considered-for-that-12096017.aspx

Subject:  Re: Stick your $500 in here Date:  3/1/2000  9:20 PM
Author:  TMFTribe Number:  5687 of 8329

One company that should be considered for that $500 is USG...do the math.

boxloc,

Well, with a post like that this must be some hot stock.

To be honest, prior to your post I had no clue what USG was or what they do , so I took a stroll over to the Hoovers website (http://www.hoovers.com) to get some sense of who they are. Here's what I found:

"USG has more walls than a maze. The company makes gypsum wallboard, ceiling grid, and ceiling tile for residential and commercial construction. USG has two core businesses. Accounting for 80% of sales is North American Gypsum, the world's #1 maker of gypsum wallboard. North American's U.S. Gypsum subsidiary holds a one-third share of the US's gypsum wallboard market. USG's Worldwide Ceiling business is the world's #1 maker of ceiling suspension grid and the #2 maker of ceiling tile (after Armstrong World Industries). Subsidiary L&W Supply, which has nearly 190 distribution centers in 36 states, is USG's distribution arm for its wallboard, ceiling, and related products."

Hmmm ... wallboard and ceiling tile. Not exactly spellbinding Rule Maker material if you asked me. Our friendly poster said "do the math", so let's take a look at their financials from September 1999:

Annual Sales $3.4 billion (TTM)
Gross Margins 29.7%
Net Margins 12.2%
Cash/Debt less than 0.5
Flow Ratio 1.54

Overall, those aren't as bad as some of the financials for other stocks I've seen touted on this board, but it doesn't paint a real compelling story either. Why mess around with a stock like this when you could just as easily put your money in an existing Rule Maker like Cisco, Intel, or even Coca-Cola, whose financials are in much better shape?

For future reference, you may want to check out our official Rule Maker criteria, which is what we use to determine if a stock is truly worthy of being added to the Rule Maker portfolio. This criteria is available from the following link:

http://www.fool.com/portfolios/rulemaker/rulemakerstep6.htm

Just my two cents.

the LanceMan

... continuing his monthly crusade against stock touts on the Rule Maker Companies board

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