I'm now looking for a third basic materials sector representative for my new Ivy portfolio.
That materials sector has thirteen industries all related to mining, making, and delivering essential commodities. They are: agricultural inputs; aluminum; building materials; chemicals; coal; copper; industrial metals; gold; paper; silver; specialty chemicals; steel.
Today I'm reviewing a mid-cap steel company, named Aperam SA Its trading ticker symbol is APEMY.
Aperam S.A., and subsidiaries, produce and sell stainless and specialty steel products worldwide.
The company operates through three segments: Stainless & Electrical Steel; Services & Solutions; and Alloys & Specialties.
It offers stainless steel and electrical steel products, including grain oriented, non-grain oriented, and non-grain oriented semi-processed steel products.
The company is also involved in the distribution operations; and the provision of value added and customized steel solutions.
In addition, it designs, produces, and transforms nickel alloys and other specific stainless steels in various forms, such as bars, semis, cold-rolled strips, wire and wire rods, and plates.
The company serves customers in aerospace, automotive, catering, construction, household appliances and electrical engineering, industrial processes, medical, and oil and gas industries.
It distributes its products through a network of service centers, transformation facilities, and sales offices.
Aperam S.A. was incorporated in 2010 and is headquartered in Luxembourg City, Luxembourg.
I use three key data points to gauge the value of any dividend equity like Aperam SA:
(1) Price
(2) Dividends
(3) Returns
Besides those three, several other keys will finally unlock an equity or fund in which to invest.
Those first three primary keys, however, best tell whether a company has made, is making, and will make money.
APEMY Price
Aperam's price per share closed at $28.57 yesterday. A year ago its price was $39.88. So price dropped $11.31 per share last year, or over 28%.
Assuming Aperam's stock trades in the range of $10 to $50 next year, Aperam's recent $28.57 price could move up by $3.43 and grow to $32.00 by late-January, 2020.
APEMY Dividends
Aperam's most recent Quarterly dividend was $0.45 declared paid December 11th.
That $0.45 quarterly payout equates to a $1.80 annual payout and a yield of 6.3% at yesterday's $28.57 closing price.
Gains For APEMY?
Adding the $1.80 annual estimated dividend to my estimated $3.43 annual price upside estimate for Aperam SA shows a $5.23 potential gross annual gain, per share, which will be reduced by costs to trade those shares.
Say we had just under $1,000.00 invested today at the $28.57 recent price would buy us 35 APEMY shares.
A $10 broker fee paid half at purchase and half at sale costs $0.29 per share.
Subtract that $0.29 brokerage cost from the estimated $5.23 gross annual gain leaves a net gain of $4.94 X 35 shares
= $172.90
for about a 17% net gain on a $999.95 investment.
Therefore, Aperam SA whose trading ticker symbol is APEMY, now shows a possible 17% net gain including a 6.3% dividend yield.
No brokers cover this stock:
I get no arguments then.
Therefore, you can look at Aperam SA and see it has made money, is making money, and could rise to net a 17% annual gain including that 6.3% estimated dividend yield. It could be more, it could be less.
The above speculation is based on past year performance. The actual results remain to be seen to determine if Aperam SA is worth your time and money.
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