Stock analysis

According to Longbow Research analyst David MacGregor, the sell off in construction materials stocks has left many companies trading at less than half of their replacement value. Given this apparent disconnect, Mr. MacGregor said, “While we struggle to find near-term positive catalysts that equity markets will recognize due to continued weakness in residential construction, softening in some commercial segments, and uncertainty regarding infrastructure spending for FY09, at some point, we believe that either a) equity markets will recognize the disconnect and will begin to bid the shares back up to levels closer to replacement value or b) strategic buyers will step in to acquire attractive long-term assets at a steep discount.” Your comment?