Synalloy Corp (NASDAQ:SYNL)
CAPS Rating:
Company is engaged in two segments: Metals Segment, comprised of a subsidiary, Synalloy Metals, Inc. and Specialty Chemicals Segment, includes three operating companies, Blackman Uhler Chemical, Manufacturers Soap and Chemical and Organic-Pigments Corp.
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I read the form 10k. It says the drastic drop in pipe sales
in 4thQ was due to Chinese imports. They have
filed a dumping complaint. If they do not get
protection they will be hurt. Most likely the protection will
be short term.
Another negative (short term) is that they paid high
prices for raw materials in 3rd and 4th quarters
and still have that inventory, but they are pricing products based on
current (lower) raw material prices. That will hurt margins.
Good company, though, at low P/E, and diversified, so
i have a hard time not liking it.
One nice thing about the dumping complaint is that most dumping complaints usually go to the one complaining (it is hard to prove a negative). Expecting this company to benefit massively.