GNA made a new all time high yesterday, on volume above average. This is a $2.49B market cap, so somewhat conservative.
I love the chart on all time frames and that's enough for me to buy the stock.
However, GNA also seems cheap on a superficial fundamental analysis. It had net income of $0.97 in 2005, so the trailing earnings multiple is 8.34. Also, the revenue multiple is 0.64, as the company sold $3.9B in 2005.
The company pays dividends, but it wasn't rising because of a dividend:
«On February 7, 2006, the Board of Directors approved a quarterly cash dividend of $0.02 (two US$ cents) per common share, payable March 9, 2006 to shareholders of record at the close of business on February 22, 2006. In addition to the regular quarterly dividend, the Board of Directors also approved a special dividend of $0.22 per share on the same payment and record date.»
The company is a steel producer, and this group of stocks is in a long term bull market.
I'll buy 6.66% of capital in GNA's shares around today's open.
fyi:
1)
GNA: KeyBnc/McDonald Ups to Aggressive Buy from Buy; Ups Tgt to $10 vs $9; Analyst Notes
Thursday , February 09, 2006 08:52 ET
Issuer: Gerdau Ameristeel Corp (NYSE: GNA)
Analyst Firm: KeyBanc Capital Markets/McDonald
Ratings Action: UPGRADE
Current Rating: Aggressive Buy (from Buy)
Target Price Action: INCREASE
Target Price: $10.00 (+11.11% from $9.00)
Analyst Comments: The firm raised its recommendation citing positive earnings surprise, strengthening end markets, better execution, and valuation.
2)
GNA: Short Interest UP 132.7% to 840.1K in Feb 2006
Wednesday, February 22, 2006 17:50 ET
According to new short interest data from NYSE, short interest for Gerdau Ameristeel Corp (NYSE: GNA) INCREASED 132.7% to 840,060 shares for the month ended mid-February, 2006.
SYMBOL JANUARY FEBRUARY CHANGE %CHANGE DAYS/COVER
-------- ------------- ------------- ------------- ------------ ----------
GNA 361,053 840,060 +479,007 +132.67% 2
Based on GNA's 20-day average daily share volume of 648,935, it would require approximately 2 day(s) of buying to cover this short interest.
QuoteNice pick Dave, i like this company a lot, i used to have a position in at 7 and then got stopped out on that crazy hammer candle that occurred a couple weeks ago on earnings.
Yes, intraday stops are a bad way to protect risk, I prefer to use stops on close.
QuoteA little bit more on this company on my thread in the stock picking board: http://www.3stocksonfire.org/trading/index.php?topic=4402.0
I'm glad you furnished this link, since I have little time today (my internet connection was down early in the morning) to update stocks, users will most likely find interesting information on your thread.
I just feel the stock had a day of pause on Friday, but the trend is bullish and it will resume shortly.
Damn it, instead of writing a new message, I was editing fous's message. Sorry ::)
«
QuoteNice pick Dave, i like this company a lot, i used to have a position in at 7 and then got stopped out on that crazy hammer candle that occurred a couple weeks ago on earnings.
Yes, intraday stops are a bad way to protect risk, I prefer to use stops on close.
QuoteA little bit more on this company on my thread in the stock picking board: http://www.3stocksonfire.org/trading/index.php?topic=4402.0
I'm glad you furnished this link, since I have little time today (my internet connection was down early in the morning) to update stocks, users will most likely find interesting information on your thread.
I just feel the stock had a day of pause on Friday, but the trend is bullish and it will resume shortly.»
Quote from: David Randolph on February 27, 2006, 07:09:28 AM
Damn it, instead of writing a new message, I was editing fous's message. Sorry ::)
Lol i was so confused reading my thread that you edited, I was like when the hell did i write this??
-fous
Hi, David
Didn't know where to post better
Can you take a look on BMD fundamentals, please
Since may to dec 2005 they up 500%. Last two month down 20%( due n.gas down 50%)
Last two day - up, but low vol. When n.gas prices stabilize- somewhere should be a good entry
Of course, if you say YES to FA
From Yahoo news
QuoteBirch Mountain Resources (amex: BMD - news - people )-- Buy: Birch Mountain has expanded mineral mining rights in Alberta, where the "oil sands" are being mined. The company has enlarged lime-producing facilities, and further production additions include asphalt rock, lime and reagent-grade limestone products, which are key enablers in alternative and synthetic fuels. Although BMD increased nearly three-fold since the third quarter of 2005, expansion completion suggests that there is some strong upside potential based on Birch Mountain's ability to increase sales with the introduction of its new products.
Thanks
lana
IIIN,TS,ATI,GGB,IPS,HSVLY,OS,NUE,CMC,RIO,GNA,CRS,SID,PCP,SYNL,CGA,RESC,STLD,ZEUS,PKX,SHLO,NSS,ROCK,USAP,NX,MTLM,TXI,CLF,STTX,NWPX,MTL,WOR,MT,FRD,SIM,MEA,SCHN,AKS,TONS,WPSC
Quote from: peterwangos on February 27, 2006, 11:37:01 PM
IIIN,TS,ATI,GGB,IPS,HSVLY,OS,NUE,CMC,RIO,GNA,CRS,SID,PCP,SYNL,CGA,RESC,STLD,ZEUS,PKX,SHLO,NSS,ROCK,USAP,NX,MTLM,TXI,CLF,STTX,NWPX,MTL,WOR,MT,FRD,SIM,MEA,SCHN,AKS,TONS,WPSC
Lol Peterwangos i dont know what your trying to say by posting all those symbols. But i don't really like the way you presented them by just listing like 20 of them and not saying a word about em. If you feel you have a good pick to present to the community, then do so on the public boards.
On GNA, made a nice rally today making a new all time high.
-fous
GNA is doing well and I'll continue holding it.
BMD's fundamentals Lana?
Ok, I'll write about the stock after the close, but this isn't the right place to put these questions (I know, I'm not paying enough attention to the Members Board either).
GNA is exactly the kind of stock that I'm looking for now: strong technical uptrend and low valuation.
No doubt GNA has a bullish chart.
The earnings multiple is 7.7.
I'll continue holding GNA.
Well Lana, I took a look at BMD's fundamentals and I don't find them attractive. I can't judge them , since the company has $542M in market cap, just 11 employees and zero revenues. Probably their properties are worth a lot, but the stock, for now ... I don't think so Lana.
Good luck anyway :)
Going back to GNA, nice move yesterday. A good trade is profitable right from the start, so GNA is a good trade. I have to sit tight and let good trades develop.
I'll continue holding GNA.
Hi, David
Thank you for BMD and sorry again for messing the thread - will not happen anymore
lana
Quote from: lana2b on March 02, 2006, 02:59:27 PM
Hi, David
Thank you for BMD and sorry again for messing the thread - will not happen anymore
lana
No problem Lana :)
GNA is showing very strong volume today, as the bullish trend continues. There were no news today. I'll continue holding this cheap steel maker.
There were no news but GNA's stock price keeps on rising. Sometimes it is harder to sit tight when you're right than when you're wrong. I'm right on GNA, so I'll sit tight.
Big news on IVAN this morning:
IVAN has a successful run in heaviest oil covertion in its California facility.
GNA is developing a bullish trend, doing a consistent technical move.
Some news out recently:
- Gerdau Ameristeel purchases Callaway Building Products (http://biz.yahoo.com/prnews/060314/to107.html?.v=22)
- Gerdau AmeriSteel upgraded by CIBC Wrld Mkts (http://finance.yahoo.com/q/ud?s=GNA)
The only obstacle so far is the $9.00 resistance, where we have already watched 2 reactions. The volume continues to be strong, and so the upside «magnetic force», I think its only a matter of time until GNA trades above $9.00 (and that would be a great technical signal to improve its already bullish pattern).
On the downside, $8.20 is the first support, and we are going to use it as a Stop level (on close).
We'll HOLD GNA unless it is set to close bellow $8.20.
Best regards,
GNA just made a new all time high today, breaking out the $9.00 short term resistance level. Volume was also very attractive, trading three times the average and reinforcing this bull trend a lot.
As for short term and after this new breakout we would expect continuation, the $10.50/$11.00 level would be an easy short term target, but it's always difficult to analyse stocks with trends like GNA. So the trend is our friend, and we just don't send our friends away.
For downside, we'll consider the $9.00 ex-resistance as a new support level, but we'll continue holding GNA, with a $8.20 stop level (on close).
Best regards,
GNA was up again after yesterday's breakout.
We'll continue to hold GNA, with a $8.20 stop level (on close).
A normal correction on GNA today after the recent breakout, we expect that the $8.85/$9.00 level will act as a good support.
We'll be updating our stop level to $8.40, since it's based on an ascending trend line, and continue to hold GNA.
GNA seems to have a slight resistance to cross the $10 level (it's also a psychological barrier), the stock is riding a powerful bull trend, and it has a lot more potential for sure, but we need a breakout ;)
The current trading range is approximately $9.00 to $9.80, where 9$ was the previous resistance level, we expect that an upside breakout could lead GNA to $10.60 very quickly, and that's what we are waiting for. Although the downside break could change the overall technical overview for short term, so we are updating our stop level:
Hold GNA with a stop @ $8.80
Best regards !
This is just a routine stop update due to the ascending support.
The new plan is:
Hold GNA with a stop @ $8.90
From one of our last updates:
Quote from: Ramsburg on April 04, 2006, 12:38:00 AM
The current trading range is approximately $9.00 to $9.80, where 9$ was the previous resistance level, we expect that an upside breakout could lead GNA to $10.60 very quickly, and that's what we are waiting for(...)
Yesterday's high of the day was $10.60, achieved only 2 sessions after the range's breakout. The reason why we didn't set any sell order was because we think the potential can be much higher than a simple technical range projection.
The recent main trend on GNA has been supported by an ascending line (blue on the chart), and all we are doing is to ride that trend, we have no plans to catch the high of this trend, so we'll just keep following it for now.
GNA will probably start a new short term trading range, like it did it before, only after that we can make new projections.
Our new plan is just an upgraded stop level:
Hold GNA with a stop @ $9.35Best regards !
The new trading range is not evident yet (we may still have some potential on the upside on this stage), GNA is doing a great job here and we'll continue to do our job too, which is to ride this trend.
This update is just a stop upgrade, the new plan is:
Hold GNA with a stop @ $9.65
Best regards !
We almost got our stop price filled last Thursday while GNA tested the ascending support level and bottom of its recent trading range. Friday was a good recovering session, bringing GNA next to its recent highs.
Some News developments:
- Gerdau's Sweetened Sheffield Bid Gets OK (http://biz.yahoo.com/ap/060428/gerdau_sheffield.html?.v=1)
- Gerdau Ameristeel Corporation - Q1 Earnings Announcement Webcast - May 3, 2006 (http://biz.yahoo.com/cnw/060428/gerdau_q1_webcast.html?.v=1)
GNA is trading a powerful technical pattern, we'll keep our plan for now:
Hold GNA with a stop @ $9.65
Best regards,
Ok, we decided not to hold GNA through earnings and to lock down this profit.
We may get back into GNA later.
The plan:
Sell GNA today at or near the open.
Best regards !
Earnings are out already:
"Gerdau Ameristeel first-quarter profit rises
Wed May 3, 2006 8:33 AM ET
NEW YORK, May 3 (Reuters) - Steel producer Gerdau Ameristeel Corp. (GNA.N: Quote, Profile, Research) (GNA.TO: Quote, Profile, Research) said on Wednesday that first-quarter profit rose as shipments and mill prices increased and scrap costs fell.
Net earnings were $87.4 million, or 29 cents per share, compared with $78.6 million, or 26 cents a share, a year earlier, the Tampa, Florida-based company said."