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Message Boards Settings Eagle Materials, Inc. (EXP) - Quote Info
Re: Eagle will get bought out.      2-Apr-09 09:13 pm    
Look Ash Grove Cement (www.ashgrove.com) ASHG.PK,
Ash Grove Cement has plants in:
Texas (where they also operate a terminal with Eagle)
Arkansas
Kansas
Nebraska
Idaho (it is closing down, very small operation and very old)
Utah
Washington
Oregon
Montana, which is having issues in their quarry and if it stays closed there customers will have to be served from somewhere else
Ash Grove Cement was to build outside of Los Vegas, but issues caused the project to stop. However the money was in hand to build a 1.5 million ton plant)

Eagle has plants in
Texas (different area than Ash Grove Cement has)
Illinois
Wyoming, which could help serve the customers in Montana
Nevada

Eagle has a cement production of 3.3 million tons per year. At today’s closing price Eagle is worth $1.1 billion. That is $333 per annual ton of capacity, new plant constructed price is around $400 to $450 per annual ton of capacity. That means Eagle’s cement capacity is worth at least $1.32 billion.
Remember that Eagle also has ready mix operation (value is around $60 per annual yard of concrete pour capacity), aggregate, and wall board operation.

If you look at the history of Ash Grove Cement, they buy plants when the market is down.
They already have a relationship with Eagle in a Houston terminal
They bought 5% stack in the company
They had money arranged to build a plant that fell through

For these reasons I see them buying Eagle.


Sentiment : Buy
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zoare200

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If you look at the history of Ash Grove, they are very ...
zoare200 (2 Ratings) 26-Mar-09 08:08 pm  
 
Re: Eagle will get bought out.
zoare200 Not rated 2-Apr-09 09:13 pm  
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Eagle Materials Inc. (EXP)

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