Hey Sonar,
I haven't looked closely at ERS for about half a year.
There are two points I would check out in more detail:
1.) According to SEC filings ERS has had a very close relationship with Hulett Aluminium Pty (of South Africa) over e years and has regularly been importing over half of there aluminium from them.
Last time I took a glance there was some announcement that Hulett was reviewing its relationship with ERS. If I remember correctly, no decision were to be made within a 12 month period.....but it came across as an indication that there relationship may very well be coming to an end imho.
That is already probably reflected in the current pps.
2.) Assuming ERS hasn't drastically changed it's business operations in the last 7 or 8 months, with some minor exception it is basically an aluminum 'import' and sales company.
The weakening of the USD has probably been a disadvantage to it. That combined with US economic slowdown would probably offer poor guidance for them (actually they have historically been very poor communicators with shareholders - there may be no kind of guidance other than what the have to disclose in the 10K.)
Finally, as you have probably already seen, they have poor liquidity in volume..........but a very tiny float that sometimes really moves that pps nicely up and down (hard to get shares to short on the downside though).
In a fast market downturn, ERS pps offers the possibility of dropping much more than it reasonably should. That may offer nice opportunities for short term trades. all imho of course.
ERS is still on my radar, but I need to catch up on the most recent Filing/pr's/articles.
If you find anything interesting, would appreciate if you can post it here.
GL bro!
br,
Bill
