XME - With Aerospace Recovering Universal Stainless & Alloy Products Should See A Meaningful Ramp

• USAP reported improving revenue and margins in the fourth quarter, as the aerospace inventory correction cycle is over and companies are looking to increase build rates.
• USAP generates around 60% of revenue from the aerospace market, the backlog is growing, and management is looking to add two more VIM furnaces to increase its premium alloy capacity.
• The long-term track record here doesn't make this a quality buy-and-hold name, but the leverage to the aerospace recovery cycle should support a higher stock price.

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