Nsomniyak Challenge:
Probably just like most everyone else, the selections were made by finding the most bloodied and bruised...so.....:
I went with the Steels:
STLD: Recent approvals to buy back 18.9M shares. Net income and EPS respectively in 2Q 2008 vs 2007 are $210.5M and $1.05 (2008) and $93.9M and $0.48 (2007). Outlook is mostly flat, but over 100% y/y increase in EPS combined with 3-month 50% haircut makes this attractive over the next 3 months.
GGB: Brazilian steeler also with a 50%+ recent trim boasts Gross revenue reaches R$ 22.3 billion in the 1st semester 2008, 35.2% higher than the same period in 2007....Net profit reaches 3.2 billion in first quater with net margin of 16.0%....Crude steel production grows 25.6% in 1st quarter when compared to the same period in 2007...Exports from Brazil generate revenues of US$ 994.5 million ....Recent acquisitions closed recently to expand in Brazil and Argetina.
GNA: American subsidiery of GGB. Recent 2nd quarter beat estimates and was $0.60 EPS, not counting $17M or $0.04 per share of one-time expense. Expansion of operations through the recent acquisition of Chapparel Steel, nearly doubling company revenues. CEO had upbeat comments regarding the rest of the year. Oh yeah-and its haircut was nearly 50%.
CNX: This company has its hands in many fascets of energy production, including mining, transporting and sales and its portfolio includes coal, coalbed methane gas, nat gas, and oil. Recently approved $500M share buyback (over 24 months).
DPDW.ob: wildcard well chronicled on the VMC MB. Still holding my actual port shares. Company has improved balance sheet and recent aquisitions put it in good position as an investment. We'll see if it can show some life over the next three months.
CNEH.ob: Had to take it because my other selection didn't qualify. Beat to death on the VMC MB. Sometimes the best defense is a good offense, plus I HAD to boost my sheepish ratings! So there you have it!.
Buford T.
