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Worthington Industries, which accounts
for 4% of U.S. steel demand and 17%-20% of hot-rolled sheet purchases, eked
out an $0.08 per share profit in its August quarter due to cost reductions
and rising steel prices. It withstood a 54% revenvue decline, and earned
over 100% of its profit from its 50%-owned suspended ceiling joint venture
with Armstrong World. Volumes fell almost 50% in steel processing and metal
framing for construction uses.
We rate WOR Overweight with an $18 price
target due to the fine performances of its suspended ceiling and cylinder
units, and the potential for the dormant steel processing or framing units
to have future value or be spun off into a newco. It could prove worth
more.
Separately, our member Joseph Reagor is
in Albania today visiting Tirex (Zn, Cu and Au polymetallic sulphides) on an
expense-paid trip, which is one more regional geology for us to learn about.
We are tentatively planning a December
2nd Boston day for Worthington Industries on behalf of an institution
conflicted unable to attend our November 18th program in New York. We are
studing a November 9-11 Colombian trip to visit Xstrata coal, AngloGold
Ashanti La Colosa and Greystar Resources, Ventana Gold and Galway Resources
in the California-Vetas district.
Thompson Creek, Teck, UTS Energy, Osisko
and Barrick Gold appear to be the "hottest" companies filling up for
one-on-one meetings for our November 18-19 conference. We appreciate your
RSVPs.
John C. Tumazos
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Copyright © 2008 John Tumazos Very Independent Research,
LLC
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