Opinions
Lyle Stein
Russel Metals
RUS-T
HOLD
Jul 04, 2014
Stock price when the opinion was issued
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It is in the metal fabrication business. They just raised their dividend this year and have dramatically changed their balance sheet for the better, so it is in much better shape than in past cycles. They also have a U.S. operation and have done a great job managing their working capital. Tariffs could hurt them a bit.
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Canada's showing leadership, commodities moving higher, big infrastructure push. This name should participate in the broad expansion we're seeing in Canada. Yield is 4.05%.
Stock has acted incredibly well. Owns this primarily for its yield, and is quite comfortable that it will be maintained for a while. Stock is being driven lately because it is becoming a sort of quasi-oil service company (because of piping), so it is getting a kind of run that many companies in the oil service patch have enjoyed. A perfect type of stock for a portfolio. Historically pays dividends as a percentage of revenues.