Canaccord Genuity on Sustainability & CleanTech -- Recycling: Growling Bear
Tweet
Share
E-mailGet Alerts MEA Hot Sheet
Price: $0.60 --0%
Rating Summary:
1 Buy, 1 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 12 | Down: 15 | New: 40
Rating Summary:
1 Buy, 1 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 12 | Down: 15 | New: 40
Join SI Premium – FREE
Canaccord Genuity on Sustainability & CleanTech -- Recycling by Eric Prouty
Prouty said, "Growling bear: Last week was a brutal one, with the DJIA and S&P 500 each losing 6%-plus. Much of the damage was done on Thursday when the Federal Reserve announced “Operation Twist,” its latest scheme to help boost the economy. The plan, which involves shifting the Fed’s securities portfolio from short-term to long-term US Treasury bonds, should further reduce long-term interest rates, but investors continued to focus on the rising possibility of a major global economic recession. So after last week’s latest plunge, the stock market is now almost in official bear market territory, typically defined as a 20% decline from a recent peak."
"Based on our industry checks, we can say that market participants see some softening in ferrous prices in October, but nothing dramatic by any means. From our perspective, we’ve been through these “fire drills” many times before, as the combination of scary economic headlines, falling stock prices and weaker nonferrous prices all suggest that the industry is about to roll over fast. No one knows what’s going to happen for sure, of course, but our conversations with industry participants revealed that scrap yard operators are keeping their cool and haven’t seen any meaningful change in customer demand for ferrous scrap. Nonferrous remains an area to keep an eye on, in our view, as these metals have become a growing source of profits given the proliferation of shredders and sorting/separation equipment."
"We reiterate our BUY ratings on Metalico (NYSE: MEA), Schnitzer Steel Industries (Nasdaq: SCHN) and Sims Metal Management (NYSE: SMS)."
Prouty said, "Growling bear: Last week was a brutal one, with the DJIA and S&P 500 each losing 6%-plus. Much of the damage was done on Thursday when the Federal Reserve announced “Operation Twist,” its latest scheme to help boost the economy. The plan, which involves shifting the Fed’s securities portfolio from short-term to long-term US Treasury bonds, should further reduce long-term interest rates, but investors continued to focus on the rising possibility of a major global economic recession. So after last week’s latest plunge, the stock market is now almost in official bear market territory, typically defined as a 20% decline from a recent peak."
"Based on our industry checks, we can say that market participants see some softening in ferrous prices in October, but nothing dramatic by any means. From our perspective, we’ve been through these “fire drills” many times before, as the combination of scary economic headlines, falling stock prices and weaker nonferrous prices all suggest that the industry is about to roll over fast. No one knows what’s going to happen for sure, of course, but our conversations with industry participants revealed that scrap yard operators are keeping their cool and haven’t seen any meaningful change in customer demand for ferrous scrap. Nonferrous remains an area to keep an eye on, in our view, as these metals have become a growing source of profits given the proliferation of shredders and sorting/separation equipment."
"We reiterate our BUY ratings on Metalico (NYSE: MEA), Schnitzer Steel Industries (Nasdaq: SCHN) and Sims Metal Management (NYSE: SMS)."
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Freedom Broker Upgrades John B. Sanfilippo & Son, Inc. (JBSS) to Buy
- Deutsche Bank Starts Ardagh Metal Packaging S.A. (AMBP) at Hold
- NetEase.com (NTES) PT Lowered to $143 at Macquarie
Create E-mail Alert Related Categories
Analyst CommentsSign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
