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Schuff International, Inc. and its wholly owned subsidiaries are primarily steel fabrication and erection contractors with headquarters in Phoenix, Arizona and operations in Arizona, Nevada, Florida, Georgia, Texas, Kansas, California and Colorado.They are a small, thinly traded company which appears significantly undervalued at 4.2x trailing earnings and .65x book value. I agree with boghead and dcrednek's analysis of the company below.
About the worst thing I can find about them is that they might be making about half as much profit as they were last year which will give them something like a P/E of 4 rather than 2. The only other bad news, if you call it that, is that they just bought a plant in Stockton. This means that rather than being able to buy a company with cash on hand worth more than the market cap, you might have to settle for a company that is worth a little less than cash on hand. That would really be a shame if they didn't have a good profit margin and low debt.If someone has a compelling argument against this company please speak up. I can't find any justification for the price being so low.
SHFK.PK is among the most profitable and cash rich companies.
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.
Every once in awhile, I run a stock screen to find companies that fulfill the following criteria:1.) Market Cap < $1bln2.) Revenue Growth > 20%3.) EPS Growth > 15%4.) Institutional Ownership < 50%5.) P/E < 15Bdoodles 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]
1.) Market Cap < $1bln2.) Revenue Growth > 20%3.) EPS Growth > 15%4.) Institutional Ownership < 50%5.) P/E < 15
This is my top pickI stumbled upon a "total package" structural steel company trading at about 7X earnings and is growing substantially. Schuff International (SHFK.PK) They complete huge projects from engineering to erection (allowing them to respond more efficiently to overcome challenges of time and complexity) for general contractors and engineering firms. They have done work for Perini corp (PCR, check their 5 year chart) and companies such as Bechtel (they build power plants, etc..) recently. They currently have the Largest structural steel project in the US going on, building a new 3000+ room hotel for the Venetian on the Las Vegas strip. They built the roof on Cardinal Stadium, the Sprint arena, a Mercedes manufacturing plant, airport terminals, power plants, high-rise offices, hospitals, dams, bridges, mines, casinos, warehouses, etc... They are the largest fabricator & erector of structural steel in the US. Insiders own 45% of the $200 Million market cap company. The stock has gone from $3 to $28 in the last 2 and a half years UNDER WALL STREETS RADAR. Mutual funds only own 3% of the company, the daily volume ranges from 0 to a couple thousand shares, yet the stock has climbed steadily. The RISK as far as I'm concerned is that they were de-listed from the major exchanges by request about 2 years ago because they had less than 300 shareholders, which made the cost of maintaining staff, records, and rigorous SEC requirements not worth their time or money. They have won various safety awards, and maintain a low injury rate as recorded by OSHA, which keeps their insurance down and shows me that they are running their company the way multi-billion dollar companies (like the one I work for) are run. Their Earnings/ share the 3 months ending 6/07 were $1.47 vs .88 the previous year.Their Earnings/ share the 6 months ending 6/07 were $2.35 vs. $1.69 the previous year.Their Price/Sales ratio is .35, Price to book value 2.5 They should earn $4+ a share this year, giving them a PE of 7 with substantial growth ahead. I think you should check out the website www.schuff.comHere's their balance sheet http://irpage.com/shf/documents/Qtrly%20Report-063007.pdf the ticker is SHFK.PK , the company is SCHUFF INTERNATIONAL; it is a new kind of trade to me, as I have never bought a stock with such low volume. We will have to use limit orders. Either I'm in before the "Street" discovers them, or I'm a fool? This is going to be a top performing sector for the next few years. Their name has "international" in it, if they take their business elsewhere, they have unlimited growth potential as "globalization" continues.
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