When last I wrote about Universal Stainless & Alloy Products (USAP),
I was bullish on the long-term potential of the company's efforts to
upgrade its product mix, but skeptical about the valuation of the stock.
Since then, the shares are down about 7%, having spent the last six
months chopping between $32 and $38. In that time, that company's
progress on volume growth and mix has been frustratingly inconsistent.
I have a nerdish interest in metallurgy and companies like Allegheny Technologies (ATI), Carpenter Technology (CRS), A.M. Castle (CAS), and Haynes International (HAYN),
but following companies and science is a completely separate issue from
the stocks. I do generally like the potential for advanced alloy growth
in aerospace, power machinery, and oil/gas, and I also do believe that
vacuum induction melting (or VIM) products will skew USAP's mix higher
over time. Here and now, though, it's hard to call the shares
undervalued, with an apparent fair value around $33 to $37.
Please continue here:
Has Universal Stainless & Alloy Products Bottomed?
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