Synalloy Corp (NASDAQ:SYNL)

yeah baby

Up over 2% on a very bad day. Maybe bumps to come, but looking long term. Recent insider buying too.

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.

ROE: 23.7%
Qtrly Revenue Growth (yoy): 31.80%
Price/Sales (ttm): 0.59
8.3x P/E
0.95% dividend yield
66.8 million dollar backlog

...along with recent heavy insider purchasing

Only worries, steel costs-demand and low cash per share, some loss of growth momentum. Though I do believe its other segment (chemicals) helps to balance the steel worry. (Sales up 18% in its chemical segment 3rd qrtr 2007).

I believe the pros vastly outweigh the cons at this price and though growth is slow now this company is too small and in too great of a market not to grow in the future. Also, the slow growth should increase profit margins in 2008.

If anyone buys this stock plan on holding it for the long haul (5yrs+).

SYNL is a head scratcher. Financials strong. Market segment equally strong. And yet the stock has taken a big fall.

I wouldn't put real money in SYNL without a lot more research, but I always love stocks that are ignored by Wall Street (SYNL has no analyst coverage) and are highly rated by the CAPS community.

In looking at the ratings history on SYNL, it seems the CAPS community fairly quickly downgraded SYNL slightly around the time of the big haircut in July. But the CAPS community has pushed SYNL back to 5 stars since October. I'm betting on the community intelligence here to have correctly called the bottom.

I'll enjoy the ride back up.

Low P/E, close to its 52week low, very small market capitalization, nobody is analyzing it on the Street, and of course a great business! I'm buying between $18 and $19.

This might be a double bottom here, I think it could hit the mid-twenties.

WEAK DOLLAR = HIGHER NICKEL PRICES = RAMPING PROFITS FOR SYNL

SYNL just finished it consolidation and will is going to ve revalued

No analyst coverage and very little institutional ownership. The part of their business that is really humming right now is large diameter high nickel alloy piping (liquid natural gas (LNG)infrastructure, municipal waste water infrastructure and other less glamorous applications...lol) look at the metals segment revenue growth over 6 years:

2001 - $47.3mm
2002 - $43.3mm
2003 - $48.7mm
2004 - $62.6mm
2005 - $84.1mm
2006 - $102.8mm

now compare that growth curve with their backlog numbers....the story gets more interesting:

(All totals are at year end except q2 2007)

2001 - $3.7mm

2002 - $5.8mm

2003 - $6.7mm

2004 - $11.5mm

2005 - $20.1mm

2006 - $54.9mm

Q2 2007 - $62.2mm

So the indicator of future revenue has grown 10 times faster than revenue.....hmmm

Also consider the company is trading at 10 x EPS, .75% of sales and has very little debt.

Finally consider that LNG and municipal waste water infrastructure spending is exploding.

Did I mention that no analysts cover the company??

Not ready to put real money in this one yet.

This company makes money, first of all. Their sales are going up strongly, but be careful with the source of their revenue. They are very upfront in their quarterly report. Mgt says that a lot of the revenue is due to higher surcharges as a result of high commodity prices. As prices decrease, that source of revenue will also decrease. I'd like to see a better increase in sales volume to account for their revenue, but its not there yet.

I'm bullish, though, because of the 25% short volume!! A lot of short-sellers have made some money and they are going to start getting nervous and taking profits after the great returns last quarter. I think we'll see a squeeze push this stock back up quickly when the short guys start panicking.

Risk/reward now favors the longs at $22; likely strong money maker from here for patient longs.

BOOM just popped a yearly high on impressive volume and great fundy's. This stock is in a good group and has a tight capital structure.

I have been a micro-cap guy my whole career and this what what you look for. It will depend on their upcoming qtrs.

3

This stock is a undervalue play.

I don't quite understand the slide this stock is experiencing with the recent guidance from management being stellar. The chemical side was down this quarter, but is expected to rebound, and the fabrication side has backlog through 2010, and expecting 80% capture this year. Am I missing something? I am loading up for my own portfolio as well as for my children's portfolio.

This stock just went through a depreciation, but it has just reported some strong 2nd quarter results, which should attract some bullish investors. While its specialty chemical sales declined 5% in the last quarter, its metals sales increased 33%. The specialty chemicals division is forcasting an increase in orders due to a new law requiring new fire retardants in mattresses. Metal sales should continue to be strong due to a backlog in energy and wastewater treatment projects, of which 80% are forcasted to be completed in the next 12 months.

Earnings are surging, but somebody doesn't think it can continue. We shall see .....