Nucor Corp is a manufacturer of steel and steel products (hot rolled steel shapes and cold finished bars, joists and deck).  The company has grown profits and dividends at a 20%+ pace over the last 10 years earning a 20%+ return on equity.  While current economic conditions has slowed that growth over the short term, the longer term outlook for NUE remains bright because:

(1) a large percentage of sales are covered by long term contracts which stabilizes its production and includes surcharges allowing it to pass on higher raw material costs,

(2) management’s focus on innovative and cost efficient ways to produce steel,

(3) an aggressive acquisition program that concentrates on purchases that are accretive via new cost saving technologies or add-ons to its product line,

(4) the company as a $2.1 billion cash reserve and a $1.3 billion credit facility which should allow it to weather any further economic difficulties and take advantage of opportunities for acquisitions.

Nucor is rated A+ by Value Line, carries a 29% debt to equity ratio and its stock yields over 3.1%.

Statistical Summary

                 Stock      Dividend         Payout      # Increases   
                Yield      Growth Rate     Ratio       Since 1999
 
NUE          3.1%            6%             47%             8*
Ind Ave      2.8               6                50              NA  

                Debt/                       EPS Down       Net        Value Line
              Equity         ROE      Since 1999      Margin       Rating

NUE         29%*          12%            4                9%           A+
Ind Ave     24               11              NA             6             NA

*NUE pays bonus dividends which distort the some dividend statistics.

   Chart

    Note:  recent NUE has broken the up trend off its March low and its November 2008 trading high (green line).  It remains above the down trend off its May 2008 trading high (red line).  The blue line barely visible in the lower right hand corner is the lower boundary of a long term up trend dating back to 1975.
 


http://finance.yahoo.com/q?s=NUE
11/09
  
News on Stocks in Our Portfolios

    Sysco (High Yield and Aggressive Growth Portfolios) reported its first fiscal quarter earnings per share of $.55 versus forecasts of $.45 and $.46 reported in the comparable 2009 fiscal quarter.

    A positive write up on WalMart (Dividend Growth Portfolio):
    http://seekingalpha.com/article/170779-will-wal-mart-growth-plans-move-the-stock

    From Zacks’ on Strayer Education (Aggressive Growth Portfolio::

Strayer Education, Inc. (STRA - Analyst Report) delivered a record third quarter. Earnings per share of $1.21 topped the year-prior 83 cents and outpaced the Zacks Consensus Estimate by 4%. Revenues totaled $114.4 million, a 31% increase year-over-year. Fall enrollments jumped 22%.

“We are pleased with our solid financial results for the third quarter and our strong student enrollment for the fall term,” said Robert S. Silberman, Chairman and CEO of Strayer Education, Inc. “We look forward to opening 13 new campuses in 2010. For the 2010 winter term, we will add three new Strayer markets with new campuses in New Brunswick and Lawrenceville, New Jersey and Little Rock, Arkansas.”

Bullish Forecasts

Strayer said based on the strong enrollment numbers and the planned investments in opening new campuses, it sees fourth-quarter earnings ranging between $2.28 to $2.30 per share. For 2009, the company is expecting earnings to range between $7.56 to $7.58 per share. Analysts polled by Zacks are in agreement.