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Gold/Mining/Energy : Canadian Small Cap Stocks -- Ignore unavailable to you. Want to Upgrade?

To: Technopeasant who wrote (172)	7/13/1998 8:12:00 AM
From: Ally	Read Replies (1) \| Respond to of 512

>>Are you sure it has bottomed yet? The last few weeks trading have been straight downhill. I'm no good at picking bottoms so generally wait for an upturn before looking seriously. I'm not sure this one is all the way down yet. Even though the numbers look OK, the steel sector hasn't found bottom.<< With a two year buy and hold investment time-frame, I tend to be less concern on timing for a stock to hit bottom. RUS has come down from over $6 to its book value, and when it turns up, it tends to go up quick. Your point is well taken though, that we don't know when the bottom is reached until it turns up, and to wait for an upturn before buying. From what I've read so far, the steel cycle is at a high peak. Demand remains strong due to the strong economy. Steel stocks however have gone south over past few months due to the threat of Asian imports and perhaps because of the GM strike. RUS however is a wholesaler, and would be less impacted by the Asian imports. The key to profitabiity for RUS is inventory management, and the bulk importers don't have this edge. As long as the economy holds, and there is commercial constuction and office buildings going on, an efficent steel wholesaler should fare ok. Thanks for your input. Anyone in the steel industry which can give more insight into this stock?