SCHUFF INTL INC (SHFK.PK)

dcrednek (70.60) Submitted: 10/23/2009 11:31:51 AM : Start Price: $17.20 SHFK.PK Score: +17.75

Schuff International is an old-line business. The company operates as a fabricator and erector of structural steel. Yes, it has definitely been hammered by the bursting of the real estate bubble and the slow-down in large-scale construction projects (arenas/stadiums, bridges, casinos/hotels, etc). But look at its fundamentals and you'll see that at it's current price, the market has priced this company will a very wide margin of safety: Price/Sales (ttm) is 0.21, Price/Book (ttm) is 0.65, Book Value is still $26.61 (mrq), of which $12.76 (or 74% of it's current market price) is cash. Now I'll be the first one to point out the obvious: Schuff is going to go through some more hard times before it sees a pick-up in revenues and profits. But I think that the company is priced to endure this low point in the construction cycle. What about it's debt load? The company currently carries $40.5M of debt against cash of $90.9M. Levered Free Cash Flow (ttm) is $64M, or $9/share.

My conclusion is simple: like this business or not, Schuff's current market price positions it for some tremendous upside and has baked-in some very generous downside protection.

cashsage (96.87) Submitted: 7/28/2009 9:05:03 PM : Start Price: $13.50 SHFK.PK Score: +38.80

SHFK.PK is among the most profitable and cash rich companies.

davethewav9 (89.60) Submitted: 7/23/2008 3:46:45 PM : Start Price: $27.00 SHFK.PK Score: -12.28

Phenomenal growth in past few years
Very reasonable debt
Mgmt takes much pride in company and products
Great ROE
Redicuously cheap, even from a slow-growth perspective.

plaidone (98.02) Submitted: 7/1/2008 4:25:37 PM : Start Price: $28.90 SHFK.PK Score: -17.17

Maybe I'm crazy, maybe not. All I know is I love TDAmeritrade's tool that lets you examine several stock symbols within an industry. I was considering shorting PHHM (Palm Harbor Homes) when I noticed this one pop up in the Construction Services Industry list. Guess what? They actually have a positive P/E with a 5-year earnings growth of over 50%! Just how often have you seen stats like that in the "credit crunch"? I'd much rather go long a good stock than risk going short a bad one. Even if you know it's bad, you can get squeezed. Wouldn't you rather limit your downside too? It's not paying a dividend like some of the other construction stocks, but they're not doing well anyway. There's not much talk about this stock on finance.yahoo.com, so there's probably more room for price improvement.

dbhealylongonly (55.58) Submitted: 5/1/2008 9:19:37 PM : Start Price: $26.00 SHFK.PK Score: -1.65

Every once in awhile, I run a stock screen to find companies that fulfill the following criteria:

1.) Market Cap < $1bln
2.) Revenue Growth > 20%
3.) EPS Growth > 15%
4.) Institutional Ownership < 50%
5.) P/E < 15

Bdoodles did the necessary DD, and he's right on the money. Not sure why this company hasn't hit the radar yet. Even largely avoided the subprime mess, in spite of being in the construction industry. Long term hold.

CAPS Rating - 2 Stars [12 outperforms / 5 underperforms]

dbhealy (99.82) Submitted: 3/27/2008 6:44:59 PM : Start Price: $27.00 SHFK.PK Score: -10.66

1.) Market Cap < $1bln
2.) Revenue Growth > 20%
3.) EPS Growth > 15%
4.) Institutional Ownership < 50%
5.) P/E < 15

Raffito (< 20) Submitted: 3/25/2008 10:21:14 AM : Start Price: $30.00 SHFK.PK Score: -16.32

pend