Metalico, Inc. (MEA), the scrap metal processor with 20 recycling facilities across the United States, reported the strongest quarter in the company's history as soaring metal prices hiked revenues by 342%.

The company, a Zacks #1 Rank (Strong Buy), operates in two segments: ferrous and non-ferrous scrap metal recycling and lead fabrication.

It is the scrap metal recycling segment which is spurring the company's growth. In the second quarter, volumes rose 185% for ferrous and 93% for non-ferrous metals year-over-year.

Prices have skyrocketed. In the second quarter, ferrous metal prices increased 126% and non-ferrous soared 215% quarter-over-quarter. The largest source of non-ferrous revenue in the quarter was in the Platinum Group Metals (PGM).

Metalico Cautions About The Third Quarter

MEA obviously operates in the highly volatile commodities sector and is susceptible to price fluctuations. For the third quarter, the company expects ferrous metal pricing to remain

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Metalico, Inc. (MEA), the scrap metal processor with 20 recycling facilities across the United States, reported the strongest quarter in the company's history as soaring metal prices hiked revenues by 342%.

The company, a Zacks #1 Rank (Strong Buy), operates in two segments: ferrous and non-ferrous scrap metal recycling and lead fabrication.

It is the scrap metal recycling segment which is spurring the company's growth. In the second quarter, volumes rose 185% for ferrous and 93% for non-ferrous metals year-over-year.

Prices have skyrocketed. In the second quarter, ferrous metal prices increased 126% and non-ferrous soared 215% quarter-over-quarter. The largest source of non-ferrous revenue in the quarter was in the Platinum Group Metals (PGM).

Metalico Cautions About The Third Quarter

MEA obviously operates in the highly volatile commodities sector and is susceptible to price fluctuations. For the third quarter, the company expects ferrous metal pricing to remain

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September is an interesting month.

The Stock Trader's Almanac calls it the worst performing month of the year, but that is not always the case. During the late 1990s, September was great for stocks. The past couple of Septembers have also yielded positive returns.

The month corresponds with the peak of hurricane season, however. Though oil prices have pulled back from their record highs, any disruption to supplies could send crude prices gushing. Let's hope the damage from Gustav is minimal.

Regarding the current economic environment, the general expectation is that data will not be very good over the next several months. But, relative to other periods of weakness, the economy is in pretty decent shape. Hidden behind the headlines is the simple fact that unemployment remains at favorable levels. Plus, most homeowners are current on their mortgages.

On a technical basis, we are entering September in a low-volume trading

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Cimarex Energy Company (XEC), an oil and gas exploration and production company, has surprised on estimates 4 consecutive quarters, yet the stock has retreated from recent highs as crude prices have fallen. XEC now trades at just 6.14x forward earnings.

Cimarex Surprised by 5.51% in the Second Quarter

On Aug 5, the company once again beat Wall Street estimates when it reported its second quarter earnings. Net income soared 191% to $229.3 million, or $2.68 per share, from $78.7 million, or 93 cents per share in the year ago period. Analysts expected $2.54 per share in the quarter.

Revenues jumped 81% to $588.7 million from $325.8 million a year ago.

Obviously, the revenue growth could be attributed to the surging crude and natural gas prices as crude rose during the quarter. Natural gas prices increased 45% to an average of $10.57 per thousand cubic feet (Mcf) and crude

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