Jim:
All week, it's
CNBC's "Green
Week"... We've been
talking about the
collapse of the
green thesis...
wrecked by
plummeting oil
prices, and hedge
funds gone wild...
Now I want to check
up on another stock
with a green
angle... Owens Corning (OC)...
also know as "the
Pink Panther" for
its insulation
business.
Owens Corning is a
pastiche, yes even a
mosaic, of a company
with a roofing
business and asphalt
business and the
aforementioned Pink
Panther insulation
business... and, our
favorite, a
composite materials
business that makes
the composites used
in windmills.
Let's put the cards
out here. I've liked
it since May 12th,
when it was at $24
bucks. It's now been
cut in half... but
it's not a 2 for 1
split... trading at
$12.08. A mistake,
and I own the
mistake.
I got very excited
about Green Week...
well, excited,
because oil was at
$147...
See all
of
tonight's
stocks
mentioned
on
Yahoo!
Finance,
here...
Friday,
November 21, 2008
(Cont'd from
above)...
Jim (cont'd):
What did it do? Did
it disappoint? No.
It reported a
better-than-expected
quarter, thanks
primarily to
better-than-expected
roofing results,
courtesy of storm
damage throughout
the country. But
nobody seemed to
care.
The weakness in
housing and decline
in energy prices
make it much cheaper
to heat your home.
That's hurting the
insulation business,
which was just break
even for the
quarter.
And, while
composites have been
strong, most of that
business is in
Europe, so there's
weakness across the
pond as investors
worry, plus the
strong dollar...
Owens Corning
started buying back
stock in the second
quarter. It picked
up 1.9 million
shares. And that was
of course at $22
bucks. That's too
high, obviously...
more than 10 points
higher than the
current price, and I
say, ouchy...
We need to know what
the main growth
driver will be going
forward, because the
global slowdown puts
composites at risk,
and insulation is
tied to housing. The
question is, can
roofing pull the
company forward on
its own?
Let's find out
what's happening
with the Pink
Panther. Let's hear
from Michael Thaman,
the chairman and CEO
of Owens Corning (OC)...
Mr. Thaman, welcome
back to Mad Money.
How are you?...
Jim's comments AFTER
the interview:
Look, if the hedge
funds are ever done
finished selling...
which I don't know
if they ever will...
and, if oil goes up
again, which I think
it will go... this,
at $12 bucks, is
going to be a buy. I
am not going to
pound the table (for
you to buy it). Why?
Because we had an up
day today and, when
we have a down day
next week, you'll
probably be able to
buy the darn thing
at $10... So, I've
got to tell you... I
hate this market.
It's nice to have
some lift. I would
not sell Owens Corning (OC)
and, if it came down
more, pull the
trigger! It's too
darn cheap!
