Schuff International (SHFK): Cheap, Ugly, and a Potential Multi-Bagger
Schuff International is cheap at less than half of book value, ugly as a cyclical and highly levered construction company, and a potential multi-bagger with the continued recovery in construction spending. While casual onlookers of the stock may view it as extremely risky--- high debt load, big debt maturity in 2013, and a nano-cap with limited disclosure, this risk is misunderstood, creating an extraordinary cheap stock for current investors. The company’s management seems to agree—having retired over half of the shares in the past year at a huge discount to book value. I believe the stock is a great risk/reward at current levels and is conservatively worth...
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