Stephen Simpson, CFA
Long only, growth at reasonable price, value, research analyst

Louisiana-Pacific Hit With Weak Pricing And Trouble With Regulators

Wood building products manufacturer Louisiana-Pacific (NYSE:LPX) is having a tough time of it, as residential housing has been in a slow, erratic recovery and competitive OSB supply returns to the market. Making matters worse, regulators have not gone along with the company's contemplated acquisition of Ainsworth (OTCPK:ANSBF). Between poor OSB pricing and worries about the merger going through, Louisiana-Pacific shares have been left behind by other residential housing plays like Headwaters (NYSE:HW), Stock Building Supply (NASDAQ:STCK), and Universal Forest Products (NASDAQ:UFPI).

LP still looks undervalued, but it's harder case to make. OSB pricing has shown signs of life and a pickup in residential building should be a "when, not if"...

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