Topic: Growth Stocks

The Stock Pickers Digest Hotline – Friday, August 8, 2008

Article Excerpt

RUSSEL METALS, $30.09, symbol RUS on Toronto, rose over 9% this week after it reported higher revenue and earnings. In the three months ended June 30, 2008, its profits nearly tripled to $78.8 million or $1.25 a share from $29.3 million or $0.47 a share a year earlier. Earnings exceeded consensus expectations of $1.16 a share. Revenues rose 31.2%, to $856.3 million from $652.8 million. In the latest quarter, higher steel prices and improved same-store volumes boosted sales at its metals service centers by 34%. The metals service centers account for 58% of Russel’s revenues and 60% of its profits. Strong U.S. energy operations and growing Alberta oil sands business helped sales of energy tubular products (28% of total sales), which rose 41%. The company will pay a special dividend of $0.05 a share on September 15, 2008. That’s in addition to its regular $0.45 quarterly dividend, which implies an annual yield of 6.0%. Russel’s outlook remains positive. However, its exposure to both…

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