Company Overview - Louisiana-Pacific Corporation is a leading manufacturer of engineered wood products, serving new home construction, repair, and remodeling markets [6] - The company generates revenue primarily through the production and sale of value-added wood-based building materials to various markets, including construction and outdoor structures [8] Financial Performance - For the trailing twelve months (TTM), Louisiana-Pacific reported revenue of $2.82 billion and a net income of $216 million [4] - The company's dividend yield stands at 1.4% [4] - In the third quarter, siding revenue increased by 5% year over year to $443 million, driven by pricing, while oriented strand board (OSB) revenue fell sharply due to declining commodity prices [10] - Adjusted EBITDA dropped to $82 million from $153 million a year earlier, but management reaffirmed full-year siding EBITDA guidance of approximately $430 million with margins near 26% [10] Recent Developments - Elwood Capital Partners initiated a new position in Louisiana-Pacific Corporation by acquiring 40,000 shares valued at approximately $3.55 million, bringing the fund's total reportable U.S. equity positions to 19 [2][3] - This new position represents 2.17% of the fund's 13F assets under management (AUM) as of September 30 [3] - As of the latest report, LPX shares were priced at $82.55, down 21% over the past year, underperforming the S&P 500, which is up about 15% in the same period [3] Market Position and Strategy - The balance sheet remains strong with $1.1 billion in liquidity and positive operating cash flow of $89 million in the quarter, despite $84 million in capital spending [11] - The company is shifting towards value-added products, which may provide a more stable earnings base compared to the volatility in OSB prices [11]

Group 1: Coca-Cola (KO) - Coca-Cola offers a 2.8% dividend yield and is considered relatively safe in the current market environment, making it a strong investment choice [2][3] - The company is insulated from cross-border tariffs due to its local production and sales strategy, which minimizes exposure to tariff impacts [2][3] - Increased packaging costs from tariffs on aluminum are not significant for Coca-Cola, as aluminum constitutes a small part of its overall cost structure [3] Group 2: Louisiana-Pacific (LPX) - Louisiana-Pacific specializes in engineered wood siding and oriented strand board (OSB), with its pricing heavily influenced by wood fiber and resin costs [4] - The company could benefit from tariffs on Canadian wood fiber, as it has the capacity to increase production in both Canada and the U.S. [5][6] - Long-term prospects for engineered wood siding are positive, with potential market share gains against alternatives like vinyl and fiber cement [7] Group 3: Pool Corp. (POOL) - Pool Corp. is a resilient business, with 65% of its sales coming from maintenance and minor repairs, which supports sales even in a slowing discretionary spending environment [8] - The company does not have significant direct imports and does not anticipate material impacts from current tariffs on sales for 2025 [10] - Long-term growth prospects remain strong due to ongoing pool maintenance spending and a potential recovery in new pool construction [11]