Schnitzer Steel offers long-term bet-Barron’s
September 8th, 2008 | by admin |NEW YORK, Sept 7 (Reuters) - Shares in Schnitzer SteelIndustries (SCHN.O: Quote, Profile, Research, Stock Buzz) have slumped on the back of fallingsrap-metal prices but the decline is overdone, according toBarron’s Sept. 8 issue.
Shares in the metal-recylcer have fallen 50 percent in thelast two months to $58.30 and it now has a marketcapitalization of $1.6 billion, a bargain-basement price thatmakes it an appealing play on a long-term scrap metal recoveryand rising steel demand, Barron’s said.
The company may also be attractive as a takeoverproposition. Barron’s cited a report from Bob Richard, ananalyst at Longbow Research, that said the company could beworth as much as $150 a share in a buyout. (Reporting by Elinor Comlay)
