Buy - Price 118 on July 1
by Singular Research

Ameron manufactures fiberglass and concrete pipe used in oil and gas, chemical, and water/wastewater systems; PVC liner that protects pipelines from the effects of corrosion; and wind-turbine towers and decorative concrete and steel outdoor lampposts. It owns a construction-materials business in Hawaii, and a minority stake in a steel mini-mill in Southern California. AMN reported weak Q2 top line, but upside results from Tamco steel [a joint venture] rebounded strongly. Management maintained a stable growth outlook. We're raising our target from 123 to 143, implying that AMN should sell for 18 times our fiscal '09 earnings-per-share estimate of $7.96. Risks: Many of its end markets are cyclical. [Hence, its] growth gets a higher discount than other typical growth companies. Market cap: $1 billion.

DIV 1.0
IS 113 IN 100-105

Ameron (AMN) deals mainly in water pipeline systems but also has a wind-tower manufacturing business that could double in size this year.

20%

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17.3

manufactures engineered products and materials for the chemical, industrial, energy, transportation, and infrastructure markets. It has four groups: Performance Coatings and Finishes (PCF), Fiberglass-Composite Pipe (FCP), Water Transmission, and Infrastructure Products. The Performance Coatings and Finishes segment offers coatings and surfacer systems. The Fiberglass-Composite Pipe segment provides filament-wound and molded composite fiberglass pipe and fittings for various process industries, including industrial, petroleum, chemical processing, and petrochemical industries. The Water Transmission segment offers concrete and prestressed concrete cylinder pipe, steel pipe, and reinforced concrete pipe for water transmission, storm and industrial waste water, and sewage collection.The Infrastructure Products segment supplies ready-mix concrete, crushed and sized basaltic aggregates, dune sand, concrete pipe, and box culverts to the construction industry in Hawaii.

Water infra-structure play

BUY

Somebody able to make a living at steel in the US has to be innovative and a very old-school industry.