Topic: How To Invest

Power Growth Investor Hotline – Friday, November 12, 2021

Article Excerpt

RUSSEL METALS INC., $35.65, is a buy. Through their shares, investors tap one of North America’s largest metal distributors: the company (symbol RUS on Toronto) serves 33,000 clients at 48 locations in Canada and 16 others in the U.S. Russel’s revenue in the three months ended September 30, 2021, jumped 80.2%, to $1.11 billion from $614.9 million a year earlier. That reflects the improving economy and higher oil prices. (Russel supplies pipes to oil and gas drillers.) Excluding one-time items, the company earned $132 million, or $2.10 a share. That was up sharply from $18.0 million, or $0.29. The company’s balance sheet is sound. As of September 30, 2021, Russel held cash of $336.8 million, and its long-term debt of $294.5 million is a low 13% of its market cap. Meanwhile, it has just acquired a group of companies that operate as Boyd Metals for $110 million U.S. Boyd operates five service centres in Fort Smith (Arkansas), Little Rock (Arkansas), Joplin (Missouri), Oklahoma City…