The Panic-Proof Portfolio (Stockchase Research) Commercial Metals Company CMC-N PAST TOP PICK Oct 27, 2022

Our PAST TOP PICK with CMC has triggered its stop at $48.  To remain disciplined, we recommend covering the position at this time.  When combined with our previous buy recommendation, this will result in a net investment gain of 29%. 

at CMC, we firmly believe that our people are the key to our success. our energetic and entrepreneurial spirit has enabled us to remain a leader in the metals industry for over 100 years, and we believe our success is a direct result of the contributions and work ethic of the most talented work force in the industry. we take pride in recruiting and developing the best talent for every facet of our business and encourage that each job is done the right way - correct, consistent and safe. the safety and well-being of our employees is our number one priority. learn more about the cmc family and discover the world of possibilities that awaits when you have a career with a spark!

The company is expanding beyond traditional steel products into ancillary construction services.  It trades at 8x earnings, 1.4x book and supports a ROE of 23%.  Quarterly cash reserves are growing, while debt is repaid and shares bought back.  We recommend a stop-loss at $40, looking to achieve $57 -- upside potential of 17%.  Yield 1.3%   

Our PAST TOP PICK with CMC is progressing well.  To remain disciplined, we recommend trailing up the stop (from $40) to $47 at this time.  

Our PAST TOP PICK with CMC has achieved its target at $57.  To remain disciplined, we recommend covering half the position at this time and trailing up the stop (from $47) to $52.  

Our PAST TOP PICK with CMC has triggered its stop at $52.  To remain disciplined, we recommend covering the position at this time.  This will result in a net investment gain of 11%, when combined with our previous recommendations.