Metals recycling business SGM was the markets 2nd worse performing stock yesterday falling -5.8% after digesting the previous days results and encountering a downgrade by Macquarie Group. We see no issue with SGM more just a case of too much too soon after popping to fresh highs earlier in the week i.e. another classic “fade the rally but BUY the dip scenario”. The stocks enjoyed a strong rally over the last 12-months and a pullback is healthy in our opinion, we wouldn’t be surprised to see another 6-8% downside but under $15 it will be on our radar – one for the Hitlist over the coming months
MM likes SGM under $15
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