Stephen Simpson, CFA
Long only, growth at reasonable price, value, research analyst

Universal Stainless & Alloy Products Stuck Between The Hammer And The Anvil

Credit where due to fellow Seeking Alpha contributor Doyle Publishing; it has been consistently more pessimistic about Universal Stainless & Alloy Products (NASDAQ:USAP) than I have been, and that has definitely been the right call. USAP has been hurt by the same weakness in the energy end markets and inventory destocking in aerospace that has hurt Carpenter Technology (NYSE:CRS), and the company has also been hit harder by a mismatch between sales surcharges and material costs and a slower rate of progress in adding high-value VIM-remelt products to the sales mix.

Has USAP seen the point of maximum pain? Commercial aerospace orders are supposed to pick up as 2016 goes on and the destocking process

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