In recent steel/commodity rallies, SMS has seemingly been overlooked, but on downturns, SMS follows suit. SMS has fallen recently from mid-30s (when I started looking at it) to mid-20s. As large steel makers are gobbling up smaller targets, I believe SMS could be an acquisition target. They are reporting earnings toward the end of August, and have previously raised full-year guidance for this upcoming earnings report by 10 to 15% (back when SMS was trading in the mid-30s). Looking for a nice earnings report and hopefully an acquisition of SMS by a larger steel company. SMS does not seem to be widely known by fund managers...yet...but my Google alerts indicate that funds are adding new holdings in SMS lately.
(check fund ownership on MFFAIS: http://www.mffais.com/newsarticles/2008-08-11/1063427-125683.... as an example)
$29.53 (08/23/08)
