Reliance Steel & Aluminum (NYSE:RS)

CAPS Rating: 4 out of 5

The Company provides metal processing services and distributes a full line of a number of metal products, including alloy, aluminum, brass, copper, carbon steel, titanium, stainless steel and specialty steel products, to a range of industries.

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Player Avatar WNYBarry (< 20) Submitted: 1/20/2009 4:00:47 PM : Underperform Start Price: $18.38 RS Score: -97.16

I used to be employed by this company at one of it's subsidiaries, and considering the recent economy of the market, and their industry, coupled with the poor acquisitions of companies too close to currently owned companies, they are headed for distaster. Because the competition starts being within three companies owned by Reliance. All they are doing is cutting their own margins, and they refuse to subsidize their current companies to decrease the competitive nature in which the steel industry operates in. For instance, they own 3 companies (Phoenix Metals, Chatham Steel, and Infra-Metals) all which supply the entire state with hot rolled / carbon steel. Eventually they will run each company out of business.

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