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Metalico Inc. (MEA): Tap into the recycling trend

This is the sixth in a series of trend-spotting tips from Hilary Kramer's newly-released book, Ahead of the Curve.

As I say in my new book, Ahead of the Curve, a picture tells a thousand words... and a good statistical picture can also lead to thousands of dollars! By this, I mean that if you pay attention to statistical trends and graphs from polls and other data, you can easily uncover trends in business and finance.

For instance, demographic statistics right now tell you the Baby-Boomers are aging, our country's Hispanic population is growing in number and income level, more people are going to prisons than ever before: in turn, this can lead you to hot companies doing things like making hip replacements (for baby-boomers), selling certain specialty food products (like those catering to the Hispanic market), or supplying prisons with garments.

Continue reading Metalico Inc. (MEA): Tap into the recycling trend

Metalico Inc. (MEA): Hasn't lost its luster

I've been bullish on Metalico Inc. (AMEX: MEA) for some time, and my enthusiasm isn't waning, even as the market gets hit left and right. The Western New York based, full-service metal recycler has six facilities in New York and another in Pennsylvania. A buyer of metal scrap, it then processes it into reusable forms, and then sells the recycled metals to mills and furnaces throughout the country, Canada and to exporters for sale abroad. I must note that I own this stock.

it is also the largest lead fabricator in the U.S., operating a lead metal product manufacturing, fabrication and recycling segment with facilities in Alabama, Nevada and Illinois.

Despite solid second quarter reports on the 6th of this month, Metalico has dropped over 25% in the last month, as the overall market has gotten slammed. I think it is a bargain at this price and would pick it up.

This company has a great and seasoned management team, which will help it weather the recent downturn in the stock market. It also has a strong business model, enabling it to survive the market bumpiness. I also like its emphasis on recycling and being an overall green company.

Type of Stock: In the cyclical metal products sector, Metalico has not tarnished. A converter of scrap into useable forms, and a leader in U.S. lead fabrication industry, it is pushing into new territories hungry for its product.

Price Target: Trading at $6.45, MEA has been hit along with the general market over this last month. But as it pushes into new markets abroad, and as the demand for recycling grows, I remain convicted that we could see this in the $12 range within the year.

Please note: I own shares in MEA.

Hilary Kramer is a financial editor and money coach for AOL and an authority on investing. Visit her at www.hilarykramer.com.

Analyst initiations 6-21-07: AUXL, LAMR, OPSW and TXRH

MOST NOTEWORTHY: The systems technology sector, Auxilium Pharmaceuticals (AUXL) and BioSante Pharm (BPA) were today's noteworthy initiations:
  • Auxilium Pharmaceuticals (NASDAQ: AUXL) was initiated with an Outperform rating at Cowen, which said AUXL's lead candidate, AA4500, is in pivotal testing for Dupuytren's contracture, which could be a $400M+ revenue opportunity.
  • BioSante Pharmaceuticals (AMEX: BPA) was initiated with a Positive rating at Susquehanna, as the firm is positive on BPA's growth prospects for the transdermal estrogen market, upside potential from the female dysfunction market, and valuation.
OTHER INITIATIONS:
  • Morgan Stanley initiated shares of Lamar Advertising (NASDAQ: LAMR) with an Overweight rating and $77 target.
  • SunTrust Robinson Humphrey initiated shares of Texas Roadhouse (NASDAQ: TXRH) with a Neutral rating.
  • Morgan Joseph initiated shares of Metalico (AMEX: MEA) with a Hold rating.
  • Stifel Nicolaus initiated shares of Tenet Healthcare (NYSE: THC) with a Sell rating and a $5 target.
Analyst summaries provided by TheFlyOnTheWall.com (subscription required).

Symbol Lookup
IndexesChangePrice
DJIA-117.9710,346.43
NASDAQ-26.342,149.71
S&P 500-14.141,096.49

Last updated: November 27, 2009: 11:02 AM

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