Ray Merola
Value, dividend investing, growth at reasonable price, contrarian

Friedman Industries: A Sound Micro-Cap Tossed Into The Bargain Bin

(Editors' Note: This article covers a stock trading at less than $1 per share and/or with less than a $100 million market cap. Please be aware of the risks associated with these stocks.)

Executive summary:

  • Friedman Industries' shares trade at less than book value, and barely above current assets less all liabilities.
  • This micro-cap steel company generates positive cash / earnings, and pays a dividend.
  • In 2014, non-residential construction is expected to show improvement, paving the way to better days ahead for the steel industry.
  • The stock is woefully undervalued, proving an asymmetric investment opportunity.

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Amidst little fanfare, Friedman Industries (NYSEMKT:FRD) reported earnings after the bell on Thursday. Friedman is a niche player in the steel industry;...

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