In the June 27 Daily Stock Alert, Barron's new subscription newsletter, Fleming Meeks noted that L-P's balance sheet is sound, and that making money on the stock's recovery is just a matter of patience. In predicting the dividend suspension, he observed that when L-P last passed its payout, in November 2001 (dividends weren't resumed until February 2004), the shares rallied sharply. Time will tell. By eliminating its common quarterly of 15 cents a share, L-P, the world's largest maker of oriented-strand board for the home-building industry, will save approximately $62 million annually. The Nashville, Tenn.-based company said in a statement that "the [dividend] suspension is among several initiatives in place to conserve...cash reserves during this unprecedented slump in the housing market." These include efficiency gains, cost reductions and downtime at mills to better match supply with orders. In this year's first half, L-P registered a loss from continuing operations of $125 million, versus year-earlier income of $52 million, or 50 cents a diluted share. Revenues declined 14%, to $736.4 million. Traded on the Big Board, L-P's shares were recently quoted at 9 and change. The 52-week high and low: 20.84 and 7.56. Standard & Poor's in late July lowered its ratings on L-P's debt issues to junk status and placed them on CreditWatch with negative implications because of what it believes are prospects for a greater-than-expected deterioration in L-P's available cash balances.

7%

negative earnings, and a yield of 5.3% .

Louisiana Pacific (LPX) was upgraded to Buy, Citigroup said. Stock is down near 2003 lows, and off 40% from its August highs. Valuation call, based on a $17.50 price target.

Value play at this time when home builders are hated (lumber goes into houses/building)

Downgraded by Matrix Research from Buy to Strong Sell

Downgraded by Prudential from Neutral to Underweight

Real estate holdings, lumber, etc. Good infrastructure for engineered materials for building.

Downgraded by Goldman Sachs from Neutral to Sell

Downgraded by Prudential from Overweight to Neutral

continued losses in sector