I have just posted up a scorecard of CSC Steel Holdings using a new and improved scorecard.
As you can see, this is a company which does not have great profitability growth potential, but is pretty well run in that over the last 2 year its cashflows and net profits have been growing faster than its balance sheet. In addition it has very low gearing in the form of decreasing liabilities, meaning that it is paying off its debts, and is relatively cash rich, which is an extremely important factor in today’s environment and which will give it the ability to expand and make more capital investments should it want to. It also has a relatively high ROE and by current indications it seems to have a pretty stable and disciplined dividend policy. As of 2008 only one interim dividend has been announced but if we take last year’s full dividend, at current prices yields are at around 9%. At a current PE of around 5, I think that this would be a defensive counter to consider.
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