RoX's Investment Forum

[cleverrox]

Assessed ERSO ($1.41) and did not buy.

From researcher59:

ERSO (1.25) looks interesting at these levels …. Stock hit $1.75 a few weeks ago but has corrected sharply. Q3 was disappointing, with operating EPS of only about $0.01, but may have marked the cyclical bottom for earnings. Aluminum prices have risen significantly in recent months and are now the highest in over a year. Furthermore the company took a big charge in Q3 to eliminate its money losing extrusion business so that will no longer be a drag on earnings going forward.

Other noteworthy positives - an ongoing share buyback program with nearly 6% of outstanding shares bought back in the past year. Tangible book value of $3.23. A dividend yield of around 8%.

Peak EPS was nearly $1 both in 2005 and 2006 when the company traded under symbol ERS and was IBD’s #1 ranked stock as it ran all the way up to $64 in a momentum frenzy. It's basically the same company now as it was then.

I think the Empire Resources is likely to experience a solid turnaround in 2010 and I'm accumulating shares at these levels, a whopping 98% discount from its 2006 high !

My comments:

ERSO is a pink sheet stock with no SEC filings. I just can't do pinks any more.