Topic: Growth Stocks

Stock Pickers Digest Hotline – Friday, November 6, 2015

Article Excerpt

RUSSEL METALS INC., $19.26, symbol RUS on Toronto, is one of North America’s largest metal distributors, serving 39,000 clients at 53 locations in Canada and 12 in the U.S. In the three months ended September 30, 2015, Russel’s revenue fell 25.5%, to $773.4 million from $1.04 billion a year earlier. The company’s sales mainly declined because revenue fell 40% at its energy products division, which supplies pipes for oil and gas drillers. Earnings dropped sharply, to $12.8 million, or $0.21 a share, from $33.0 million, or $0.54. The latest figure included a $2-million charge related to a more than 7% cut to the company’s workforce. Russel’s earnings fell faster than its revenue because steel prices moved down in the latest quarter. That hurts the company’s profit margins and causes it to suffer losses on its inventory. Russel holds cash of $94.4 million, or $1.53 a share, and its $464.8 million of long-term debt is a reasonable 39% of its market cap. The…