Thursday, May 24, 2012

Investopedia: Georgia Gulf Needs Stronger Housing To Validate Its Independence

It's an open question as to whether corporate executives really take their duty to shareholders seriously, but that becomes an even more relevant issue when a potential takeover comes into the picture. Georgia Gulf (NYSE:GGC) management may well be right that Westlake's (NYSE:WLK) buyout bid undervalued the company's potential, but a great deal of that potential is tied to both a housing recovery and an improvement in the company's cost structure.

While the long-term potential value of Georgia Gulf definitely exceeds the Westlake offer, it may be hard for the company to surpass that offer in the short term.

Please follow this link for more:
http://stocks.investopedia.com/stock-analysis/2012/Georgia-Gulf-Needs-Stronger-Housing-To-Validate-Its-Independence--GGC-WLK-DOW-OLN0524.aspx

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