Savvy Trades and Investments

[gilead23]

FWIW it looks to me like FRD benefits only from rising hot rolled coil prices rather than high prices.

Inventory is carried at average cost and they seem to carry a few months of inventory so when prices rise they can charge the higher price from stuff they bought at prices from 2 months ago.

It’s a lot harder to make money when you require rising prices than when you just require high prices.

The backdrop here is pretty good for them, but there is a meaningful component of these numbers that is going to be temporary.

I’m long on this as a trade, but I suspect current numbers are grossly distorted.