Russel Metals (RUS.TO)

Steel processing company that pays a dividend. Have done extremely well. They have global customers. They are able to add value to the services they provide.

One of the good things about this company is that their cash flow is counter cyclical so when things go poorly, they draw down their inventory which creates cash flow and supports the dividend. Feels the dividend is safe. Worth looking at here with the little bit of increase in steel prices in the US. 5.6% dividend yield. $28 in the year would be possible.

Chart shows new support at old resistance levels. It does seem to be bouncing off the support. He would be reasonably optimistic on this, but watch the level of around $25. If it breaks that, it is definitely in danger. The only other point he would make is that the trend line that runs from mid-2011 was broken so he would be a little bit cautious. Has a reasonable chance to get back to the $27-$28 level.

5.61% dividend. Owned for a long time and met with CEO in last month. Likes the fact that dividend looks safe. Demand for steel is slowing, but long term he likes the name. It participates in economic growth.

Thinks they reported in the last couple of days and results were not what were expected. Dividend is quite high but is safe. Their end markets are relatively weak. There is no rush to buy this one right now until you see an improvement in the steel market.

Good stock to own. Dividend is quite safe. Have a 2013 estimated payout ratio of around 50% and the company has an 80% earnings payout policy so they may raise their dividend. Also, some potential capital appreciation due to margin expansion. Feels steel prices are going to firm a little bit. Just acquired Apex which will be very accretive for them. Have an energy tubular segment which is 25% of their business, which will be a solid beneficiary if Keystone goes through.

Dividend is sustainable. One of the best management groups in steel. Very good management team. Regrets that he has never bought. Thinks there is a new industrial cycle coming in. Earnings prospects look quite good. Prefers Magna.

An industrial that is closely related to the steel sector. Steel has a seasonal strength from around the end of January through until about the 2^nd week of May.

Just bought Apex Distribution which will give them a good platform for future earnings growth. Lots of room to boost their dividend. Payout ratio of about 65%. Really good balance sheet so will probably make more acquisitions, which will fuel their growth. Try to buy on a bit of a pull back.

Margins move up and down a lot. Generate decent cash and good dividend. Just hold it if you own it for the dividend. 4.6%.

He would probably prefer to play this one on their convertible debentures although it is kind of up there as well. Likes steel and this company. 5% dividend yield should be safe.

Likes this as a company. 5.2% dividend is sustainable. Problem going forward is the pricing power on steel. Utilization rates of steel mills in US are in the low 70s and they need to be north of 80 in order to have any pricing power. A little expensive right now. Prefers in the low $20’s.

He was taking a more negative view after their earnings, steel prices were down. He was going to be a buyer at $23 and then they announced a letter of intent to buy Apex Distribution. If they can buy it, and he is pretty confident they will, it would be immediately accretive and generate EBITDA’s of about an extra $50 million. It will also give them immediate US growth opportunities that they wouldn’t have otherwise had.

Terrific looking chart which has a rising growth channel. Trying to break above its highs.

Decent payout ratio but is leveraged to iron ore prices. Had good earnings in the last little while. He is waiting for a lower commodity price before getting into a downstream channel like this one. Dividend seems to be safe.