Topic: Growth Stocks

Stock Pickers Digest Hotline – Friday, April 27, 2012

Article Excerpt

SHERRITT INTERNATIONAL CORP., $5.70, symbol S on Toronto, reports that its revenue fell 2.6% in the three months ended March 31, 2012, to $462.2 million from $474.5 million a year earlier. Lower nickel prices were the main reason for the decline. Cash flow fell 17.0%, to $117 million, or $0.40 a share, from $141 million, or $0.48 a share. That was due to the lower revenue and higher production costs. The company’s long-term debt of $1.7 billion is equal to its market cap. However, it holds cash of $592.9 million, or $2.00 a share. Sherritt is a natural resource company that produces nickel, cobalt, thermal coal, oil and gas. It also licenses its own mining technologies to other firms and manages 376 megawatts of power generation capacity in Cuba. The company is Cuba’s largest foreign investor; its Cuban operations account for the majority of its revenue and earnings. The country’s uncertain political and economic situation adds to the stock’s risk. However, Sherritt is diversifying…