Arohan

Lumber and Forestry Companies: Building a Better Future

I own Lousiana-Pacific. Although it has negative earnings, it has cash on the books to the tune of better than 50% of its market cap and sports a P/B ratio of 0.61. It mainly serves the construction market and has been badly affected by the housing downturn. The question is, whether it can survive long enough to see the housing market come back? The company currently continues to restructure and reduce cost and with 532million in cash on the books I believe that it has the stamina to outlive the housing/construction downturn. With the stock already reflecting the worst case scenario, it is a good buy right now for someone patient enough to wait a few years. The dividend also helps while I wait

jjason, I don't know if this provides enough data to make an intelligent investment decision but atleast this should be a trigger for starting your due diligence. There is some more discussion on LPX on my blog that you are welcome to read