Nucor Corp (NYSE:NUE)

MattH42004 (94.67) Submitted: 1/28/2009 11:37:22 AM : Start Price: $26.79 NUE Score: -31.78

When the economic recovery comes Nucor should come out a big winner. First, the company has a tremendous balance sheet. They currently have over 1.5 billion in cash on the balance sheet, and more importantly, only 400 million in debt coming due over the next 5 years. This will allow Nucor to finance it's own growth from inside the company, avoiding the loanshark rates of the current credit markets. Nucor also has by far the best management in the steel industry. It's not even close. They manage to keep costs down by using scrap metal, relying on more efficient mini-mills, and avoiding any union labor by using generous profit sharing, performance based pay, and avoiding the bullsh*t executive perks that ruin the culture of so many other companies. The current 3%+ yield is also nice and appears well covered.