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this is the major competitor of USG, today USG is up over $1 afterhours BECAUSE Buffet just increased his stake in it by 19%. When I found out, I looked to see who was the major competitor and saw that ackhq was. it is .15 a share guys, (high $3) It just emerged from bankruptcy and has doubled its income the second quarter of 2006 to $72 million. If Buffet thinks USG is a good investment, he must believe in the industry (construction materials) Any thoughts?
[ October 07, 2006, 07:15: Message edited by: Bob Frey ]
T e x
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group play?
jrussin2006
posted
This looks intriguing, but it is highly speculative IMHO, but then again 99.9% of the stocks on this board are.
As noted in the introductory section titled, “Uncertainties Affecting Forward-Looking Statements” above, our business, operations and financial condition are subject to various risks. You should take them into account in evaluating any investment decision involving Armstrong. It is not possible to predict or identify all factors that could cause actual results to differ materially from expected and historical results. The following discussion is a summary of what we believe to be our most significant risk factors. These and other factors could cause our actual results to differ materially from those in forward-looking statements made in this report.
We try to reduce both the likelihood that these risks will affect our businesses and the damage they could have if they do occur. But, no matter how accurate our foresight, how well we evaluate risks, and how effective we are at mitigating them, it is still possible that one of these problems or some other issue could have serious consequences for us. See related discussions in this document and our other SEC filings for more details and subsequent disclosures.
Asbestos and Chapter 11
Asbestos personal injury claims are our biggest risk. Our balance sheet currently reflects an implied asbestos liability for AWI that results in negative equity for us. The size of our asbestos liability has not been finally determined in our Chapter 11 reorganization case. It could end up being substantially larger or smaller than the amount currently shown on our balance sheet. Even if that liability should be substantially reduced (for example by federal legislation), we may still have negative equity. Consequently an investment in Armstrong’s stock during our Chapter 11 Case is highly uncertain and speculative. See the discussions of our Chapter 11 Case and of proposed asbestos legislation in this document and in past SEC filings for details.
Claims, Litigation and Regulatory Actions
While we strive to ensure that our products comply with applicable government regulatory standards and internal requirements, and that our products perform effectively and safely, customers from time to time could claim that our products do not meet contractual requirements, and users could be harmed by use or misuse of our products. This could give rise to breach of contract, warranty or recall claims, or claims for negligence, product liability, strict liability, personal injury or property damage. The building materials industry has been subject to claims relating to silicates, mold, PVC, formaldehyde, toxic fumes, fire-retardant properties and other issues, as well as for incidents of catastrophic loss, such as building fires. Product liability insurance coverage may not be available or adequate in all circumstances. In addition, claims may arise related to patent infringement, environmental liabilities, distributor terminations, commercial contracts, antitrust or competition law, employment law and employee benefits issues, and other regulatory matters. While we have in place processes and policies to mitigate these risks and to investigate and address such claims as they arise, we cannot predict the costs to defend or resolve such claims.
Construction activity variability and the size of our market opportunity
Our businesses have greater sales opportunities when construction activity is strong and, conversely, have fewer opportunities when such activity declines. Construction activity tends to increase when economies are strong, interest rates are favorable, government spending is strong, and consumers are confident. Since most of our sales are in the U.S., its economy is the most important for our business, but conditions in Europe and Asia also are relevant.
Raw materials and sourced product issues
The cost and availability of raw materials, packaging materials and energy are critical to our operations. For example, we use substantial quantities of natural gas, petroleum-based raw materials, hardwood lumber and mineral fiber in our manufacturing operations. The cost of these items has been volatile and availability has sometimes been tight. We source some of these materials from a limited number of suppliers, which increases the risk of unavailability. The impact of increased costs is greatest where our ability to pass along increased costs is limited, whether due to competitive pressures or other factors.
derek111c
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Sounds interesting. Where did you find the Buffett info?
binnocent
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I don't have time to go back through filings now, but if I remember correctly when this emerges from Bankruptcy ACKHQ stock will be worthless. A new stock symble will begin. If you own ACKHQ you will have nothing! Please read filings to be sure. This is what I rember and reason I did not buy in!
Bob
will
posted
LOL
Thank God I won't be part of this group.
Buffet LOL !!!!! He wouldn't urinate on this company.
posted
I used to work for this company.. Great company ! 7yrs ago the stock pps was 90.00 I know alot of retired people who lost there retirement funds on the stock the company gave them
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