- The coronavirus pandemic crisis has caused a decline in net sales after strong increases in 2017, 2018, and 2019.
- Gross profit margins are improving fast and net income is again positive since the fourth quarter of 2018.
- The company suspended the dividend in 2019 and 2020 and share buybacks were never carried out seriously.
- A mix of disappointment, fear, and fed up keeps the share price low, which still has a lot of upside potential.
- This is a turnaround play worth the risks, but averaging down should be seriously considered given the cyclical nature of the company.
For further details see:
Synalloy: The Turnaround Is Taking Shape