Wednesday, September 12, 2007

Valuing Cyclicals Like the Pros

Valuing companies can be frustrating, even with high-quality businesses. If those firms are also cyclical, such as Motley Fool Inside Value recommendation USG (NYSE: USG) or Motley Fool Hidden Gems pick MDC (NYSE: MDC), they can pose significant challenges to analysts attempting to value their shares. To get a better grasp on the challenge of valuing USG, I recently spoke with Peter Supino, the Weitz Funds analyst responsible for the firm's 3% stake in the building materials manufacturer.

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