I go back quite a way with Brush Engineered Materials
It's not all that unusual these days to find a metal/alloy company posting solid results and/or attracting investor bids. After all, take a look at Allegheny Technologies
Happily, Brush seems to qualify for the "and" part. The stock is a few points off its high, but revenue in the recently released first quarter was up 29%. About a quarter or so of that growth came from acquisitions and another quarter from higher metal prices, which still leaves a pretty impressive net-net result.
Margins are still a bit of a mixed picture, as the gross margins are down but the operating margins are up. The trouble on the gross line is something a lot of investors will understand -- Brush uses a fair bit of copper in its products, and the price of copper has being going nuts. That's good news, of course, if you're Phelps Dodge
The central element to the Brush story is beryllium -- it's got a lot of it and is the only fully integrated producer of it, to my knowledge. And beryllium has ample uses -- it's stiffer than steel yet lighter than aluminum, and it has attractive conductive and corrosion properties. Accordingly, it's used in a wide range of applications from cell phones to disk drives to aerospace and automotive components. Hitachi
When it comes to the stock, all I can really say is, "Curse you, Cramer." The well-known stock-jock Jim Cramer has mentioned Brush before, and that's certainly brought attention and bids to the stock. If it somehow slipped below $20 soon, I'd get really interested. Trading where it is, though, I think there's more room to advance, but it's not an obvious enough bargain for me to want to tangle with yet another natural resources/cyclical play in my own portfolio.
For more heavy metal Foolishness:
Fool contributor Stephen Simpson has no financial interest in any stocks mentioned (that means he's neither long nor short the shares).