Olympic Steel, Inc. (NASDAQ:ZEUS)

CAPS Rating: 2 out of 5

The Company is a U.S. steel service center focuses on the direct sale and distribution of large volumes of processed carbon, coated and stainless flat-rolled sheet, coil and plate products.


Player Avatar wfmerlock (95.56) Submitted: 12/1/2008 11:07:56 PM : Underperform Start Price: $14.59 ZEUS Score: +139.45

In the last year Zeus has taken on $80M in debt; their debt is now $90M. Plus so far in 2008 they've added $130M in inventory. All the steel companies have been converting cash to inventory this year. And now that the price of steel is on a downward slide it looks like a bad time to be getting into the industry. Notice that the dividend yield is artificially high due to a one-time-only special dividend in Sept 08; the true yield is closer to 1.3%. But hey, I'm just a regular guy, please correct me if I've hosed up this analysis!

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