There was an article a few months back in the AMM that Reliance would look into a "Megadeal" for another large distributor. They wanted one at a low price. Just a question. Could it possibly be someone like Ryerson?? They only lost $189 Million in 2009 and have lost $21 Million 1st half in 2010. Check it out on Ryerson.com SEC filings. They are owned by Platinum as an investment and they sucked out $200 Million out of them in 2009. Platinum knows Reliance as Reliance purchased the PNA group. You would think Platinum didn't purchase a company to lose $$?? Sell it cheap and get out?? If Reliance did purchase a Ryerson, they would have to "clean house" to get rid of the top heavy management that is prevalent there. How many VP's do you need in one region?? 3 in the West?? Wow. Any thoughts out there?? Reliance is a great company with a very strong Corporate management team that knows what they are doing.
Ain't no way RS would buy a bleeder like Ryerson. That is just not their style. I think PE will try very hard to unload, but probably not many takers. Word is RT bleeds the hardest in developing countries. The faster the economy grows the harder it bleeds - must be a positive correlation between the numbrer of VPs and the amount of losses piling up and PE need to contiue to sink money to keep it afloat. Buying RT would be inconsistent with RS' strategy.
Ryerson is going down and it really is a shame from an historical perspective. Ryersons went down with the Titanic. At one time in the mid/late 90s they had a capable crew. Then around 2000 or so they lost touch. They stopped being competitive with EMJ. Ryerson is a last resort call; you just know they are going to disappoint.
Hotforx- definitely have to agree with you. Why would anyone buy a bleeder like Ryerson? They have the most inept, top heavy management group. Everyone right now is making $$. Castle, Metals USA, REliance. Ryerson finds ways to lose $$. Ryerson has Platinum Equity completely fooled and really surprised they haven't figured it out. Doesn't say much about either company. I wouldn't invest in either... Just my thoughts...