The commodities market may soon see its share of activity. Najarian sees some hints of M&A activity with Nucor (NUE) rumored to be looking at Schnitzer (SCHN), which caused a dramatic pop in that stock, which Najarian also bought in to. In this example, the volume was more reminiscent of institutional investors, with large chunks of volume occurring throughout the day.

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.