Dutton Associates Announces Investment Opinion: LESCO Neutral Rating Maintained By Dutton Associates

  
    
  
  
    
      Dutton Associates continues its update coverage of LESCO Inc. 
      (Nasdaq:LSCO) maintaining its rating at Neutral. The report by Dutton 
      senior analyst Paul Resnik, CFA is available at www.jmdutton.com 
      as well as from First Call, Bloomberg, Zacks, Reuters, Knobias, 
      Investars and other leading financial portals.
    
    
      Over the past five years, LESCO has been engaged in an ongoing 
      restructuring as it has sought to increase profitability and put itself 
      on a growth path. The Company has changed top managements, exited 
      manufacturing activities while remaining committed to purchasing 
      products from the sold facilities, restructured and then disposed of its 
      distribution operation, sought to lock in material costs and then 
      shifted away from locking in costs, and disbanded and then reconstituted 
      its direct sales team. Earnings have reflected the missteps in these 
      efforts and the Company reported a substantial loss from operations in 
      2006. We expect LESCO to show significant improvement in 2007, but to 
      report a loss, albeit a significantly smaller one. We changed the rating 
      on LESCO to Neutral on July 7, 2006. On February 19, 2007, it was 
      announced that LESCO had agreed to be acquired by John Deere & Co. 
      (NYSE: DE) for $14.50 in cash per share. At that time, we commented in a 
      Research Note that “although we believe that 
      LESCO’s unique network offers the potential 
      for sustained growth over the long term as near term difficulties are 
      resolved, the proposed price, in our judgment, represents a reasonable 
      offer in light of near term profitability issues.” 
      With the shareholder vote on the acquisition scheduled for May 3, 2007 
      and the stock trading at the acquisition price with some holders 
      indicating opposition to the deal, we thought a review of the Company 
      and the offer would be appropriate.
    
    
      About Dutton Associates
    
    
      Dutton Associates is one of the largest independent investment research 
      firms in the U.S. Its 31 senior analysts are primarily CFAs, and have 
      expertise in many industries. Dutton Associates provides continuing 
      analyst coverage of over 145 enrolled companies, and its research, 
      estimates, and ratings are carried in all the major databases serving 
      institutions and online investors.
    
    
      Our annual research coverage, which currently costs US $35,000 prepaid, 
      is 4 Research Reports, typically published quarterly, and requisite 
      Research Notes. Dutton Associates received $85,738 from the Company for 
      13 Research Reports with coverage commencing on 3/12/2003. We do not 
      accept payment of our fees in company stock. Our principals and analysts 
      are prohibited from owning or trading in securities of covered 
      companies. The views expressed in this research report accurately 
      reflect the analyst's personal views about the subject securities or 
      issuer. Neither the analyst's compensation nor the compensation received 
      by us is in any way related to the specific ratings or views contained 
      in this research report or note. Please read full disclosures and 
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      before investing.