Olympic Steel (ZEUS), one of the lesser-known U.S. steel companies, has some of the worst margins and highest debt levels in the industry. And while there are some great ways to get exposure to the steel industry, Olympic isn't one. The company is seeing long-term debt up near decade highs, while operating and net margins are down near decade lows. That's why we see Olympic should be heading even lower.
Basically, Olympic processes flat-rolled steel, coil and plate products. In 2011, it got into the metal tubing, pipe, bar valves and fittings business. Its key customers are manufacturers of construction and farm machinery, automobiles and electronic equipment.
Why the run?
Over the past year, shares in...
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