Carpenter Technology Corp (CRS)

It's on it's way back - as auto and airline industries pick up speed, this company is well-positioned to profit. Has a nice dividend, and the stock has been pummelled over the last two years.

higher tech cars and someday maybe airlines will need planes again

Sort of a basic material company in the early stage of the recovery. And an industry leader in specialy alloys (demanded in high tech aerospace, energy production, medical devices) -- all needed and growing fields.

Solid financials back a value investment with a timeframe that can deal with short term losses.

Price-to-Earnings (TTM)4.3 Price-to-Book (TTM) 0.81 Current Ratio 3 Current Dividend Yield 5% Return on
Equity (TTM)28.1

As the market starts to improve, this type of company will be on the forefront.

Value pure, especially relative to others because they left out the most recent bear market rally.

Value and we are likely to see the metals move higher. Solid yield while you wait.

Up Up and Away!

Can't remember...

why I picked this stock.

Patient longs may want to nail Carpenter at current $16.39 level. Recently impacted by macro environment and Boeing strike, but very sold long term, high ROE grower now trading at discount to book with ample cash cusion to ride out the near term turmoil

Graham screen pick

screen

From my "AllGood" screen. They have some pending litigation expenses that have put a shadow on the stock. My hunch is that this just means a discount on a good company.

I told them that when the cop hit me I must have gotten CRS disease

This is a good stock for your real money. They have a solid position in a high-value industry.

They also have S&P's 5-star rating ("Strong Buy") and a 12-month target price of $66 (which would mean a 74% yield). They are one of only a handful of companies with S&P's 5-star that also have a market cap under $2B.

Plus, they pay a dividend (though currently only just over 2%).

If it continues down to $40 would make CRS very attractive for a take over. Everyone likes a half off sale. Other than someone down-grading on recent weakness in the stock as it approaches it's 3-year moving average I see no valid catalyst; That's why I see this thing making a correction to the upside, after the Lemming mutual fund managers stop selling.

Levered to aerospace, energy and other long bull (aero) or less cyclical (energy) steel demands ... so it should rebound from its current bottom over the next several years. Or at least that's my thinking.

I'm really pitching anything aero related this week with Boeing at lows, oils at highs, UA desparately looking for someone to merge with and analysts calling the "sky is falling" with everything airline-related these days.

Time to go the other way (at least on aerospace providers).

supercycle