RDUS - Radius Recycling Stays In The Scrap Pile

2024-07-16 12:48:33 ET

Summary

• Radius Recycling experienced a significant decline in share price, hitting a 52-week low of $12.72.
• The company is implementing strategic changes to boost profits, including upgrades to non-ferrous scraping capabilities and cost reduction initiatives.
• Economic indicators such as durable goods orders, average vehicle age, and Chinese steel export production will impact Radius Recycling's business in the near future.

I first covered Radius Recycling, Inc. ( RDUS ) in the Fall of 2023 when the broader US market had cooled off after a fantastic bull run post-pandemic. At that time, I was screening for cyclical companies trading below book value and Radius Recycling piqued my interest because of its rebranding from "Schnitzer Steel" only one month prior, opening up the possibility of a fantastic turnaround. EV adoption was the trending headline theme and I assumed that once the new-age fleet took over, demand for non-ferrous metals would skyrocket....

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