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The author is not receiving compensation for it (other than from Looking for Alpha). OC's cost drop means that the company now has ~6% upside inside a year. The author wrote this short article themselves, and it expresses their own opinions. Speaking of the U.S. Nonetheless, cyclical housing downside risks stay.


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I reiterate my price tag target of $37.6 per share on Owens Corning as the current roofing business weakness is placed into the cost, giving that the housing industry trends do not turn more adverse or prolonged. The author has no company relationship with any organization whose stock is mentioned in this write-up. My worries are not as a great deal firm-distinct as they are signaling broader issues relating to the pace of growth prices and other developments in the present housing recovery." As a result, the risks remain for an additional feasible quarter of under-performing roofing sales, which would signal that OC could have deeper problems with competitiveness in this segment as opposed to just becoming a victim of general weakening housing business trends. Consolidated income in the quarter was $1.36B, flat Y/Y. With the recent share-price tag drop, I now see a ~six% upside within 12 months, comparative to the full valuation that I cited in my most current thesis.

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You will now receive new articles by this author by way of e mail. Nevertheless, as I stated in my most recent thesis, "the company has a history of missing its personal estimates: For instance, in addition to the current Q1 miss, the company missed as lately as in the course of the third quarter of 2013." Also, I described that "the existing woes for Owens Corning could continue. Adjusted earnings had been $45M, or $.38 per share, down from $68M a year ago or $.56 per share.

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Owens Corning reported disappointing final results, showing continued weakness in the roofing organization.


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My thesis properly called the stock fully priced and anticipated this continued weakness in the U.S. housing indicators, which continued to negatively effect OC's final results.

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Owens Corning (NYSE:OC) reported disappointing Q2 outcomes that showed continued weakness in the roofing organization but continued year-more than-year improvement in both insulation and composites. Though the insulation and composites company results have been in line with the company's expectations in Q2, the roofing organization underperformed the market again in Q2. housing numbers, they continued to be surprisingly weak, which is in line with my expectation, so I am watching OC closely.

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I reiterate my target cost of $37.6 per share. GAAP net earnings reached $21M or $.18 per share compared to $49M or $.41 per share.

For the second half of 2014, the OC's roofing company is anticipated to cease under-performing and start off moving in line with the marketplace, which could nevertheless mean a lot more weakness. The $96M adjusted EBIT for the quarter was down sharply from $124M final year