analysts know as much as you and i...

Wouldn't the poor sap analyst who put this piece of research out this morning want to call this one back by a day or two....the stock is only down $4.00 or 21.4% today!

Sims Metal Management (SGM)
From chaos comes opportunity

Strategies for growth and execution. SGM is well positioned to continue growing and drive home its key strategic advantage of global market intelligence in scrap flows. A global operating platform offers leverage and the capacity to continually engage with customers and offer the best value logistical solution. SGM is driving its ability to ship across markets in bulk or container to service the proliferation of mini mills.

Margin/risk management strategies are at the core of SGM's continuous improvement programme. A prudent capital management focus also allows SGM to grow and enhance its safety and environmental performance achievements through its enviably strong balance sheet.

SGM is committed to "recycling done right" which reduces energy consumption, carbon emissions and preserves the environment. SGM's strategic set is producing a great global organisation.

Significant upside potential to long-term valuation. SGM has traditionally traded at a PE premium to its peers and we continue to believe this premium is warranted given consistent success through past cycles. However, due to current market volatility we believe fundamental DCF analysis is prudent. Our DCF supports a 12 month price target of $21.74. In our view, long-term valuations significantly higher can be justified.