Profits are at third quarter levels. Lower scrap
prices are more then makeing up for the $30/ton price
drop. I think most people think BYX is losing money
should be a big suprise when the Dec quarter is posted.
As mentioned in the article the contact person is
I emailed him at
The reply came from
They mailed me a general guide and a year old Bayou
Steel report. I am hoping to receive a current report.
They request a donation to cover printing costs which
I will gladly send. The report is well done. And
certainly this mention in the NY Times is very nice,
especially the P/E of 2.2. That should ring some
3/7/99 Sunday NY TIMES Business Section mentions
Burkenroad (Tulane Business School) "favorite" Bayou Steel
in article on Page
Bobkbob talked about this report (post 491 etc...), but
it is a long way from Louisiana to the NY Times. We
need sponsorship for this stock, and this is a start.
29 Jan IBD page 1, item 8. "Imports of Japan's
steel off 49% as slump grows" I'm condensing the
article somewhat 'cause I don't type so good. "The US had
threatened to file a trade complaint against Japnn unless
imports fell sharply in Dec." US steel and unions have
filed dumping complaints. All together, our import of
steel dropped 32% in Dec.
Will be curious to see
what the Jan figures are. Looking for an excuse to buy
some more for my and the spousette's IRAs.
I had a chance to read the Burkenroad Reort from
Tulane Univ. It was quite interesting and it seems they
are predicting the steel market to be slow this year
with demand increasing in the year 2000 as well as
firmer prices. The capital improvements that BYX is
spending on right now will increase their capacity and
efficiencies. I am inferring from the report that they expect
2000 to be a pretty good year for BYX. Also, BYX
compares quite favorably to two of the blue chip steel
companies (Nucor and AK Steel). In fact I think you could
put BYX in that category as an unknown or emerging
blue chip in the steel industry even though they are a
small company. However their operating efficiencies,
labor cost per ton, scrap cost, conversion cost, etc.
are some of the best ratios in the industry. With the
improvements (estimated at $75 million over the next 2 1/2
years in the Annual Report) they are planning this will
be one tough competitor in the structural market. It
further reinforces my view of this stock as a great long
term play even though the steel market is hard to
figure. When the next upcycle begins, BYX will be
printing money. Even if the market stays down for a while,
they will hold their own.
1999 will be the year for the value stocks. Byx
has a great balance sheet and the 1998 income
statement is very impressive. I have been following this
company since 1993 when the union was on strike. This is
a very solid company and with the purchase of the
TN mill, the balance sheet will continue to improve.
The high flying "growth stocks" will slowly correct
and the money will flow into "value stocks" like BYX.
I am very confident this stock will have a great
1999. Buy now before the train leaves the station.
it is a steel stock, and steel stocks have been
battered the past 6 month as an out of favor sector. Plus
it is probably an unknown company to the investment
community because of it's small cap status. To me, it is a
well run conservatively managed company that has
management with some vision and should have some earnings
momentum going for it (no, I don't work there!). It is a
great value stock with a bright future, but it is a
steel stock and not very exciting now. If it were Bayou
Pharmceuticals, Bayou Semiconductor, or YahooBayou! it would be
at $50 per share or so. That's the problem in my
Since I post here frequently and am a bit biased one
could logically ask, what has BYX done for you lately?
Well, it hasn't done jack shit for me now. However, I
feel that it could be a 3 or 4 bagger for me and I'm
willing to bet on it. The market is high now and shares
are expensive. The shares of quality steel stocks are
low and those of BYX are dirt cheap. The objective is
to make money with the parameter being buy low and
sell higher. This stock fits that scenario perfectly
IMO. If you are a value player with patience, you
could have a big payday with this stock in time. It
depaends on your patience. Good Luck Investing!!
Yikes, just found this stock, and it looks like a
super value -- great P/BV, P/E, P/FCF, P/Sales,
everything. If the thing doesn't go bankrupt it looks like a
real 2- or 3-bagger and soon. Am I missing something?
You guys are GREAT!!! Thanks so much for the
info. I talked to Marie and she indicated the report
ought to be out soon, perhaps next week. Once I get a
copy and you get yours let's share our thoughts on
what it says. Let's hope this "undiscovered gem" gets
discovered in '99!! THANK YOU SO MUCH!!
Wednesday January 6, 10:35 am Eastern
RESEARCH ALERT - Merrill ups 7 steel cos
Jan 6 (Reuters) - Merrill Lynch on Wednesday said it
raised its ratings on seven steel industry companies,
including USX-U.S. Steel Group (NYSE:X - news), which was
raised to a near-term buy from accumulate.
USX-U.S. Steel's long-term rating also raised to buy from
-- raised Bethlehem Steel Co. (NYSE:BS - news) to
near-term accumulate. Left its long-term rating at
-- raised Rouge Industries Inc.'s (NYSE:ROU - news)
near-term rating to accumulate; kept its long-term rating
-- raised LTV Corp. (NYSE:LTV
- news) to near-term buy from accumulate; kept
long-term rating at buy.
-- raised Allegheny
Teledyne Inc. (NYSE:ALT - news) near-term and long-term to
buy from accumulate.
-- rasied AK Steel Corp.
to near-term accumulate from neutral and kept
long-term accumulate rating.
-- raised Nucor Corp.
(NYSE:NUE - news) near-term to accumulate to from neutral,
but kept its long-term buy rating.