Opinions

Rob McConnachie Russel Metals RUS-T BUY ON WEAKNESS Sep 23, 2019

It is a unique company. He expects their earnings to drop but they are counter cyclical because they harvest their inventory in parts of the cycle so their cash flow actually goes up quite high then. The dividend is quite safe. You have to look at cash flow over a 10 year period. Below $20 is probably not a bad entry point.

Rob McConnachie

Unknown

Unlock Rating

$21.240

Stock price when the opinion was issued

steel

It's the ideal tool to help you make quicker, more informed decisions for managing and tracking your investments.

Get Signals Create your Watchlist

You might be interested:

TOP PICK

Steel producer. Payout ratio is 49%. Sales and earnings are up, ahead of analyst expectations. Yield is 4.65%. (Analysts’ price target is $33.04)

WAIT

Owned it in the past and sold it around current levels just above $30. A cyclical company. Well managed. Doing a lot to stabilize the business. Sold because they were too exposed to energy. A good dividend yield. Likes it and wants to own it more now that they are diversifying their business. However, wait since it is very expensive.

PAST TOP PICK

(A Top Pick Aug 28/20, Up 94%) The stock market is discounting a lot of the recover happening. Has moved to CCL Industries now. It starts to get harder to hold in a cyclical business when it's runup this much.

WEAK BUY

The shortage of steel allowed this company to do well. They are well managed and pay a decent dividend. They are exiting their oil tubular business and will be a better company for it. But the price of steel will come down in a year or so.

BUY ON WEAKNESS

Billy Kawasaki’s Insights - Billy’s most-liked answers from 5i Research. It is very cheap. The balance sheet has improved and the company is in the value stock segment. The company is in a cyclical industry. It is at 4.8x earnings, which is quite good value. Unlock Premium - Try 5i Free

SELL

Steel services, an intermediary. Not a dividend growth stock, and that's part of his firm's mandate. High yield, but the dividend has been stuck at its current level since about 2014. At the top of its trading range. In a slowdown, steel isn't what you want to own. Yield around 4.5%.

Unspecified

Although there could be a bit of a near term fade the outlook is much better with good dividend growth. Not sure if it will get back to previous highs.

BUY

Very cheap valuation right now. Cyclical company that will perform well as economy recovers. Strong balance sheet and financials. Soft landing in the economy will be great for business.

HOLD

It is well positioned for an increase in demand for infrastructure spending. In answer to the caller's question, don't switch it for an energy stock.

Unspecified

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.

Stockchase, in its reporting on what has been discussed by individuals on business television programs (in particular Business News Network), neither recommends nor promotes any investment strategies.

We paraphrase the experts by hand, we watch the shows and write down what we understood from the experts’ comments. We are human and can make mistakes, help us fix any errors. If you see something that you know is not right or if there is a problem with the site, feel free to email us at : hello@stockchase.com.

Rob McConnachie Russel Metals RUS-T BUY ON WEAKNESS Sep 23, 2019

You might be interested:

Russel Metals(RUS-T)

Russel Metals(RUS-T)

Russel Metals(RUS-T)

Russel Metals(RUS-T)

Russel Metals(RUS-T)

Russel Metals(RUS-T)

Russel Metals(RUS-T)

Russel Metals(RUS-T)

Russel Metals(RUS-T)

Russel Metals(RUS-T)

Latest Buy Signals

Today's Top Picks

Popular Articles

Latest Sell Signals

Most Recent Experts

Hap (Robert) Sneddon FCSI

Brendan Caldwell

The Panic-Proof Portfolio (Stockchase Research)

The Weekly Buzzing Stocks by Billy Kawasaki

Stockchase Insights