Topic: Growth Stocks

Stock Pickers Digest Hotline – Friday, November 14, 2008

Article Excerpt

RUSSEL METALS, $20.30, symbol RUS on Toronto, is acquiring Norton Metal Products, a privately held Fort Worth, Texas-based metals service center in an all-stock purchase (no terms were disclosed). Norton has annual revenues of about $70 million. That’s small in relation to Russel’s annual revenues of over $2.6 billion. However, Norton is a known brand name in its local region, and will help Russel continue to expand in the southern U.S. market. Russel reported record quarterly earnings in the three months ended September 30, 2008. Profits more than tripled, to $91.5 million or $1.45 a share from $27.9 million or $0.44 a share a year earlier. Revenues rose 53%, to $954.9 million from $624.3 million. In the latest quarter, 34% higher steel prices boosted sales at its metals service centers by 50%. The metals service centers account for 53% of Russel’s revenues and 47% of its profits. Strong U.S. energy operations and growing Alberta oil sands business helped push up sales of…