Recycling business SGM is a stock MM has liked for a while with its environmentally friendly outlook likely to catch potential suitors’ attention e.g. even China is gearing up to switch to the use of scrap metal instead of relying on Australia’s iron ore. The stocks are certainly at the cheap end of town trading on an Est P/E of ~8x plus the companies already generating plenty of cash hence we like the outlook for this $4.1bn business on a number of fronts including as a potential takeover target.
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Gerrish: The correction is done, we’re positioning for what comes next
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Friday 13th June – Dow up +101pts, SPI up +46pts
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MM likes SGM around $21
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