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

Join Seeking Alpha PRO to read this archived article and 11,574 other archived articles
FREESA PRO MEMBERS
IDEA GENERATORXExclusive access to 10 PRO ideas every day
INVESTING IDEAS LIBRARYXExclusive access to PRO library of more than 15,000 ideas
SECTOR EXPERT NETWORKXExclusive access to all sector experts for direct consultation
PERFORMANCE TRACKINGXTrack performance of all PRO stock ideas
PROFESSIONAL TOOLSXProfessional Idea Filters to zero-in based on industry, market cap and more
"In just the first month of using PRO, I used it to generate two ideas which were actionable for me. As a result of these two positions, I have earned more than 20 times the annual subscription costs for PRO."Michael Yagemann, Greenbridge Capital
"I am pleasantly surprised with the scope of small and mid-cap coverage PRO offers. You can't find that any where else."Patrick Rice, Mainstay Capital Management
You may cancel at any time for any reason, and receive a prompt refund for membership on months paid and not used (max. 6 months). Details