STOCK OF THE WEEK: ROANOKE ELECTRIC STEEL

Roanoke Electrick Steel(RESC) and its wholly-owned subsidiaries manufacture and market steel products from scrap metal primarily extracted from junked automobiles.

The Company’s subsidiary, Shredded Products Corp., extracts scrap iron and steel from junked automobiles. Two other subsidiaries, John W. Hancock Jr. Inc and Socar Inc., fabricate open-web steel joists for use in the construction of commercial and industrial buildings.

The main plant of Roanoke Electrick Steel , Steel of West Virginia Inc, runs a state-of-the-art steel mini-mill in Roanoke, VA. The mill converts scrap into billets that are rolled into Angles, Plain Rounds, Flats, Channels and Reinforcing Bars of various lengths and sizes. The Group's customers include steel service centers, fabricators and manufacturers of trucks, guardrail posts, housing, off-highway construction and mining equipment.

Located in Roanoke Virgina gives them fast, ready access to markets throughout the eastern US by train and truck. Over 2/3 of the U.S. population lives within a days drive time of Roanoke, and Roanoke Electric Steel presently serves customers in 21 states. Rail service is provided by the Norfolk Southern. For truck freight, their main plant is located just minutes from I81, with over 50 truck carriers serving the area.

On January 5th, Roanoke Electrick Steel stock rose $1.01 to $25. That was a 4% increase after the steel company reported 10% growth in 4th Qtr. earnings. The company's profit for the quarter ending Oct. 31st rose to $17.5 mm, or $1.55 a share, from $15.9 mm, or $1.44 a share, a year ago. Sales rose to $141 mm from $139.1 mm a year earlier.

On Wednesday, March 1st the stock closed on the Nasdaq @ $28.66. That is just $.39 off its 52 week high on Feb. 6th of $29.05. Their 52 week low came 7 months ago on July 7th of $14.96.

Oh did I mention that on Jan. 18th Roanoke Electrick Steel announced their 189th consecutive quarterly common stock cash dividend in the amount of 11 cents per share. They appear to be committed to providing the best product and service at the least cost to their customers by constantly reviewing and implementing new ways and means to improve their performance and competitive position. I think it is working.

Are you prepared to “steel” some profit on their performance?

STOCK OF THE WEEK: ROANOKE ELECTRIC STEEL

Roanoke Electrick Steel(RESC) and its wholly-owned subsidiaries manufacture and market steel products from scrap metal primarily extracted from junked automobiles.

The Company’s subsidiary, Shredded Products Corp., extracts scrap iron and steel from junked automobiles. Two other subsidiaries, John W. Hancock Jr. Inc and Socar Inc., fabricate open-web steel joists for use in the construction of commercial and industrial buildings.

The main plant of Roanoke Electrick Steel , Steel of West Virginia Inc, runs a state-of-the-art steel mini-mill in Roanoke, VA. The mill converts scrap into billets that are rolled into Angles, Plain Rounds, Flats, Channels and Reinforcing Bars of various lengths and sizes. The Group's customers include steel service centers, fabricators and manufacturers of trucks, guardrail posts, housing, off-highway construction and mining equipment.

Located in Roanoke Virgina gives them fast, ready access to markets throughout the eastern US by train and truck. Over 2/3 of the U.S. population lives within a days drive time of Roanoke, and Roanoke Electric Steel presently serves customers in 21 states. Rail service is provided by the Norfolk Southern. For truck freight, their main plant is located just minutes from I81, with over 50 truck carriers serving the area.

On January 5th, Roanoke Electrick Steel stock rose $1.01 to $25. That was a 4% increase after the steel company reported 10% growth in 4th Qtr. earnings. The company's profit for the quarter ending Oct. 31st rose to $17.5 mm, or $1.55 a share, from $15.9 mm, or $1.44 a share, a year ago. Sales rose to $141 mm from $139.1 mm a year earlier.

On Wednesday, March 1st the stock closed on the Nasdaq @ $28.66. That is just $.39 off its 52 week high on Feb. 6th of $29.05. Their 52 week low came 7 months ago on July 7th of $14.96.

Oh did I mention that on Jan. 18th Roanoke Electrick Steel announced their 189th consecutive quarterly common stock cash dividend in the amount of 11 cents per share. They appear to be committed to providing the best product and service at the least cost to their customers by constantly reviewing and implementing new ways and means to improve their performance and competitive position. I think it is working.

Are you prepared to “steel” some profit on their performance?

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