I would prefer buy backs than dividends but that is my personal situation. With profit at the higher end of guidance and no tax payable for the next 4-5 years due to accumulated losses, we should see a slow and steady rise. That is unless a takeover offer is received. It would be good to see if they could leverage off their distribution and sales network and enter into other non-ferrous metal supply (specialty metals) as this segment is lacking competition. I think there are a plenty of stainless suppliers but this could also be an option. I don't know how more efficient they can run this or if there can be any more industry consolidation. They could be a bit more ruthless in the buy back. With the price rise, it would provide incentive for people to sell.
CAA Price at posting:
$10.07 Sentiment: Buy Disclosure: Held
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