Topic: Growth Stocks

Stock Pickers Digest Hotline – Friday, August 13, 2010

Article Excerpt

RUSSEL METALS, $19.08, symbol RUS on Toronto, earned $0.31 a share before one-time items in the three months ended June 30, 2010. That’s a big improvement over the $0.10 a share it earned a year earlier. Revenue rose 9.4%, to $506.1 million from $462.5 million. The company distributed more steel during the quarter; that was the main reason for the higher revenue. As well, Russel continues to do a good job of controlling its costs and conserving cash: In early 2009, it cut 500 jobs (or 16.7% of its workforce), lowered executive pay by 10% and reduced its remaining employees’ hours. Those measures are helping push up its earnings. As well, the company cut its quarterly dividend by 44.4% last year, to $0.25 a share from $0.45. The stock now yields 5.2% a year, and the dividend now appears safe. Russel holds cash of $283.8 million, or $4.75 a share. Its $335.5 million of long-term debt is a reasonable 30.5%…