Metal recycling business SGM has regained its mojo in 2020 as scrap metal prices recover helped by iron ores impressive advance since March – steel based producers obviously consider whether iron ore / coking coal or scrap is cheaper. The risk / reward is not overly exciting at current levels but a pullback towards $12 would spike our attention, especially as SGM fits our reflation view into 2021 – a 3% dividend also helps in today’s rate environment.
MM likes SGM closer to $12
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