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.
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Basic Materials Sector, Cranford, metalico inc, scrap metal, scrap-metal world, Small & Micro Cap, USD
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