Cramer thinks Reliance Steel is the next steel buyout

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By Douglas A. McIntyre Published
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Stock Tickers: OS, RS, NUE

On tonight’s MAD MONEY segment on CNBC, Jim Cramer discussed more about takeovers to find the next oregon Steel (OS) or takeover play.

He Reliance Steel (RS) is still cheap, with a considerable rolled and stainless steel that is still in short supply.  Cramer said this could be one of the smaller ones like this could be bought, but he thinks Nucor (NUE) won’t be bought.  RS could be the next buyout according to him. 

He would hold a hearing about who lost Oregon Steel.  He thinks the WSJ publishing a steel glut that kept you out of this name.  Anyway, he will go on and on but he thinks RS is the next steel buyout potential.

RS has a $2.7 Billion market cap; 52-week trading range of $28.43 to $49.75. It closed up 5.7% at $35.55 in normal trading and traded up another 4% to $37.15 in after-hours trading after Cramer touted it. If the trailing P/E is accurate it looks like RS only trades at 7.5 times earnings and 7-times DEC 2007 earnings.

Jon C. Ogg
November 20, 2006

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About the Author Douglas A. McIntyre →

Douglas A. McIntyre is the co-founder, chief executive officer and editor in chief of 24/7 Wall St. and 24/7 Tempo. He has held these jobs since 2006.

McIntyre has written thousands of articles for 24/7 Wall St. He is an expert on corporate finance, the automotive industry, media companies and international finance. He has edited articles on national demographics, sports, personal income and travel.

His work has been quoted or mentioned in The New York Times, The Wall Street Journal, Los Angeles Times, The Washington Post, NBC News, Time, The New Yorker, HuffPost USA Today, Business Insider, Yahoo, AOL, MarketWatch, The Atlantic, Bloomberg, New York Post, Chicago Tribune, Forbes, The Guardian and many other major publications. McIntyre has been a guest on CNBC, the BBC and television and radio stations across the country.

A magna cum laude graduate of Harvard College, McIntyre also was president of The Harvard Advocate. Founded in 1866, the Advocate is the oldest college publication in the United States.

TheStreet.com, Comps.com and Edgar Online are some of the public companies for which McIntyre served on the board of directors. He was a Vicinity Corporation board member when the company was sold to Microsoft in 2002. He served on the audit committees of some of these companies.

McIntyre has been the CEO of FutureSource, a provider of trading terminals and news to commodities and futures traders. He was president of Switchboard, the online phone directory company. He served as chairman and CEO of On2 Technologies, the video compression company that provided video compression software for Adobe’s Flash. Google bought On2 in 2009.

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