Russel Metals (RUS.TO)

He did own it after it broke a technical level. He likes the company and its yield. There's uncertainty around the tariffs, which he'd like to see resolved before stepping back in. Pays a 5.6% yield.

It has broken down on the technical chart and if it breaks down further, it could re-test $22 key support. He would buy on weakness based on seasonal patterns into October. Yield 5.6%.

It has been caught a little in the trade war with the US, due to its cross-border business dealings in steel. The fundamentals still look strong for the company, he says. It is a great management team. He would sell above $30 and would buy around $25. Otherwise he would hold it here. Yield 5%.

A steel and infrastructure play. He used to own it. The Trump steel tariffs have hit this stock, but Russel doesn't sell steel into the States, so it should not be hit by the tariffs. He likes this stock, but is growing concerned about limited infrastructure spending in North America.

They took a hard look at this in the commodity washout of 2016. It is a good long-term name to own. Consistent cash flows. Very cyclical though. They would really look at this if it was below $20. Yield is over 5%.

He does not like the materials space right now as there is no upward momentum in this sector presently. Given recent inflation trends, it is not being confirmed with upward price movements. He would not go here.

(A Top Pick June 16/17 – Up 20.6%.) Pays a nice dividend. They still see growth here. The risk here is US steel tariffs.

A Canadian play. The Trump threats are much ado about nothing. He's not worried. The chart is choppy, but may have potential. He bought a small amount when it was oversold. He'll watch it.

Looks good. Support level is at the current price. Volume is okay. It's been going sideways long enough to create a support level. Exit below $27. The 5.5% dividend is great. Resistance is likely at $29. Bigger resistance at $31 possibly in the late-summer/early-fall. Next support level is $25 where you may start going through this cycle again. All mineral and energy stocks are traders, so five-year holds are not great, because you can lose money. That's why the S&P has beaten the TSX.

They are embroiled in this NAFTA tariff thing right now. It could move steel prices in the right direction for them since they buy and stock steel. You are at risk of something volatile happening either to the upside or downside. If it got below $25 it would be attractive. This is a difficult business generally. The management team really respect their shareholders.

Has this on his radar screen. It’s one that has a nice dividend, but also has a growth profile. As the oil/gas business continues to drill and do well, they are producing more pipe for that, which really drives their earnings.

Not a stock he has looked at in a long while. It looks like it had a pretty decent rally. It has not done much in 10 years, however. He would look to lighten up and maybe buy it back if it gets to the lows. It is an underperformer.

Historically, steel stocks like this do very, very well from October right through until the end of the year, and then have another move into the spring time. Right now, we are just about ready to enter into the period of seasonal strength. If it moves above its trading range now, that will confirm that once again it is going through its period of seasonal strength.

He likes this for recovering steel prices, steady demand, and its position in Canada as the leading distributor. The yield looks very sustainable. Has a 76% payout ratio. Balance sheet looks really good for M&A, because they want to buy mom and pop shops and be a consolidator. On strengthening steel prices, he models them growing cash flows 25% from 2016 to 2018. However, on a PE basis, it’s a little more expensive than its peers, but on an EV to EBITDA basis, it is in line. He would look to buy this on a bit of a pullback. Pays a real nice dividend.

Has exposure to pipe fabrication. So long as horizontal drilling is going to continue apace throughout North America, they should have good exposure. He likes management.