The Low-Profile but High Value Business of Metalico Inc. (AMEX: MEA)
Source: http://Blog.QualityStocks.net/?p=12172Posted on Friday, September 5th, 2008 | In Small & Micro Cap
Some may sneer at scrap metal, but let no snobbery stand in the way of cascading dollars from this corner of the Iron & Steel Industry. It is convenient to blame the BRIC block of countries for demanding so much of various metals that scrap enterprises have become profitable. However, the truth is that it has always been so. Fierce competition and conservation concerns make a heady mix in terms of recycling finite resources.
59% of the 36.04 million shares of this small-capital member of the Basic Materials Sector are held by reputed financial institutions. The early-September 2008 stock price has hovered close to $11 against a 52-week low of just $7.45. The Price to Earnings Ratio is just 15.13, which is excellent for such a stable and mature business. Earnings per Share are at 0.70 and the Beta is 1.26. No thinking investor can afford to turn up a nose at this impressive stock.
The company is based in Cranford, N.J. It is less than two decades old but has an enviable international reputation in the scrap-metal world. The corporation is into fabrication, apart from recycling. This adds significant value from the perspectives of its best industrial clients.
Radiation shields are amongst the most valuable products this company makes, apart from mundane roofing and plumbing parts. The global market for recycling and fabrication has top prospects in the leading economies of today. This company is strongly positioned to take best advantage of this growing market segment.
Let us hear your thoughts below:
Last 5 posts by QualityStocks
- Lion Energy, Southern Star Energy (SSEY.OB), Gold Star Resources Fuse to Create Combined Company with Promising Growth Opportunities - November 6th, 2009
- VIASPACE, Inc. (VSPC.OB) Subsidiary Ionfinity Captivates Mass Spectrometry Market - November 6th, 2009
- Google’s Android Takes a Bite Out of Apple - November 6th, 2009
- Continucare Corp. (CNU) First Quarter Fiscal Year 2010 Results Show 116% Increase in Operating Profit - November 6th, 2009
- Muscle Flex, Inc. (MFLI.PK) Now Accepting Orders for the Beagle StepFit, the BUDDY Tablet Caddy and “Danny Alex Commercial Blue” T-Shirts - November 6th, 2009
Basic Materials Sector, Cranford, metalico inc, scrap metal, scrap-metal world, Small & Micro Cap, USD
 About QualityStocks (http://QualityStocks.net)
Our name, QualityStocks, emphasizes our commitment to connect subscribers with companies that have huge potential to succeed in the short and long-term future. We believe strong management and vision for the future are crucial for any company to be successful. Timing is everything and we help investors succeed by providing an objective, broad-based view of the SmallCap markets on a daily basis. Please see disclaimer on QualityStocks website: http://disclaimer.qualitystocks.net |
No recommendations, either expressed or implied, are being made to buy, sell, hold or short any of the mentioned stocks. No legal, tax or accounting advice is expressed or implied. Always contact your attorney, CPA, or tax advisor before acting on any legal or tax issues. StraightStocks.com is not responsible for the content, products, or services of any of the advertisers on this site. StraightStocks.com receives compensation from advertisers on this blog. Services and products referred to herein are trademarks, registered trademarks, servicemarks, and/or registered servicemarks of their respective trademark or servicemark owners.