Synalloy Corp.

Synalloy Corp(SYNL) is a small, South Carolina-based company that operates in two hot markets. The Metals division produces pipes for the chemical, petrochemical, pulp and paper, mining, power generation, waste water treatment, liquid natural gas, brewery, food processing, petroleum, pharmaceutical, and other industries. The Specialty Chemicals segment produces specialty chemicals, pigments, and dyes for the carpet, chemical, paper, metals, photographic, pharmaceutical, agricultural, fiber, paint, textile, automotive, petroleum, cosmetics, mattress, furniture, and other industries. As of Q2, the Metals segment was on fire, while the Speciality Chemicals segment experienced declining sales. The company has tremendous returns on assets and equity and sells at a paltry 11x trailing earnings. The company has little debt and has doubled its quarterly earnings growth year over year. Ovcr the last three months, the stock has taken about a 50% haircut. That seems to have been a bit much. If this stocks falls under $20, buy it! It's a steal.