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Subject:  New Buy: USG Date:  11/28/2006  12:02 PM
Author:  PierreArcane568 Number:  36 of 361

Initiated a small position in USG yesterday. I anticipate a short-term slide in price as the company finally settles its asbestos liability obligations under its Chapter 11 reorganization and will buy more shares on the dips. USG is trading at 50% of its intrinsic value based on my discount cash-flow calculations. In addition, after settling its asbestos liabilities (whether $900 million or $3.5 billion), the company will finally be able to implement a dividend and stock repurchase program. USG is a play on the housing market. I believe U.S. demographics for the housing market are very positive for the next 10 years.


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