$20.15 -0.31 (-1.52%)
12/3/2009 4:01 PM

Sims Group Limited (SMS)

CAPS Rating: 5 out of 5

Recs

0
Member Avatar greenfuture (69.40) Submitted: 9/18/2009 12:32:59 PM : Outperform Start Price: $20.39 SMS Score: -4.48

SMS's earnings have been slaughtered by the recession, but as global economic growth returns, the demand for metals with a low carbon footprint - a commodity in which SMS is a global leader - will grow even faster than the demand for metals in general. When SMS returns to pre-recession earnings of $2.50+ within a year or three (current hard-to-find estimates are for ~$1 by June 2011), its SP should ramp up into the $40s, $50s and beyond.

Report this Post 0 Comments

Featured Broker Partners