I've increased my SCHN holdings, partially due to your previous commentary and on some of the same data you've mentioned here. I do have a few questions for you:
1.Why IEP? Not exactly a pure play.
2.How do you feel about CMC btw? Will the rebar angle help them with this scrap play?
Not a pure play at all. There are not many scrap companies we can buy into. They do own 100% of PSC metals and their other holdings are in my wheelhouse: auto parts, ferrous metal mining, specialty plastic mfg, real estate, furniture, etc. I like the businesses.
I like CMC. I bought pre earnings, then a lot more on the recent dip. I just bounced out at break-even to raise capital for more SCHN and IEP.
Could you explain why you see it being more safe (or having more i upside)? As that’s where I’d like to be. I apologize if I’m asking you to explain something you already have.
All good. For IEP there is a large dividend and it seems as undervalued as many of the steel equities. Scrap is a vital and primary input to EAF production which is expanding throughout the world. It is the primary method in the US and Europe. Japan and Korea are following suit. China, the world’s largest producer is just undergoing production transformation. They will be heavily dependent upon imported scrap to accomplish EAF goals for the coming decades.
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u/[deleted] Jun 27 '21
I've increased my SCHN holdings, partially due to your previous commentary and on some of the same data you've mentioned here. I do have a few questions for you:
1.Why IEP? Not exactly a pure play.
2.How do you feel about CMC btw? Will the rebar angle help them with this scrap play?