Player Avatar KenN513 (< 20) Submitted: 8/5/2007 11:55:43 AM : Underperform Start Price: $11.08 NX Score: -51.63

This company operates in two major categories. They provide engineered steel for the automotive industry and alumninum sheeting for the housing industry. In am not confident in either industry. Their latest quarterly report, sumarized at, indicates that they've been flat on steel and way down on aluminum.
Yahoo! reports them making $3.55/share ttm. Analysts expectations for this stock YE'08 (October) is 3.74. This is a 4% gain. Analysts are too optimistic in predicting 15% annualized EPS gains in the 5 year time frame.
This is a good company in poor markets. They will have to invest significant capital in more steel mills to grow their steel business (they report operations at 90% capacity). I would not consider capital expansion in the current auto market wise. The housing slump is going to continue to drag their aluminum segment down.

Member Avatar avalon02 (96.15) Submitted: 8/31/2007 7:32:26 PM
Recs: 0

I have to agree that the dismal picture of the housing market will be a drag on-- just about everything. We certainly don't have manufacturing to fall back on-- My take on NX is that it is, like you say, "a good co in a poor market". This is a recipe for a contrarian--to buy in this kind of market, when the stock is being pummeled, to hold until the markets get better. If they can perform well enough in the next 8 to 12 months to show profits of any kind, it might be worth the ride..

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