Metal recycling business SGM outperformed on Monday closing up +2.9% as bullish sentiment flowed from China, today we have looked for stocks that could add 20-30% into Christmas and while SGM does fit this profile we weren’t overly impressed with last months earnings report which were solid for FY23 but we felt the outlook for FY24 was muted at best i.e. there are better ways to “play” an improvement in ferrous scrap prices.
- We can see SGM making fresh 2023 highs into Christmas but it’s not a stock that’s likely to find itself in an MM Portfolio
MM is neutral to mildly positive SGM
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