Schnitzer's stock has retraced its first-half gain, and now trades for $58. A stronger global economy could send the shares to the mid-70s; a takeover, to more than $100.

The stock has a PE of 12 , a PEG of 0.69 , and pays a yield of 0.1%

i like metal

growth

Goldman Sachs said it is downgrading Schnitzer Steel (SCHN) to Sell from Neutral based on valuation. See shares trading well ahead of both its fundamentals and relative to peers. Note that rising scrap prices in domestic markets could squeeze margins in scrap export business and mini-mill. Price target at $47.

Call JAN08@95 $235

China and Korea need iron and our junkyards need a cleaning.

Our little steel recycler

Schitzer Steel owns Cascade Rolling Mills and Pick and Pull retail outlets They are a major player in the recycling markets mimicing the trend toward efficient reuse.

Schnitzer Steel (SCHN), for example, dominates scrap steel in the western half of the U.S. This morning it announced some super earnings, much, much better than expected, a true blowout: $1.47 vs. $1.07. That's the kind of earnings surprise that should be listed if you Google "earnings surprise." It's a classic example where the estimates presumed really bad numbers.