Most savvy investors understand that trying to pick a bottom, especially a particularly poor market, is no way to invest. At some point, however, the investor will recognize that there are certain segments of the market that are always going to be a need. Finding these needs and picking those that one feels might be a bargain is the key. In past posts a longer term view has been suggested. Now may be the time to find the real bargains as this time may be quickly running out.
Industrial Services of America Inc., a logistics management services company, offers products and services primarily directed to the recycling and waste industries. The company offers its services in Canada, the United States and Mexico.
From a general perspective, the company is full service in nature, vertically integrated to offer all aspects of waste removal and recycling. These services may include consulting services, supply and sale of required compaction equipment, third party contracting and management and recycling of materials with emphasis on metals. In this last regard, the company tends to focus on ferrous and nonferrous steel products for resell to mini-mills. To accomplish its ends the company works through four segments: ISA Recycling, Alloy’s, Computerized Waste Systems and Waste Equipment Sales. All work separately but are considered as the whole.
Although the company experienced a first quarter decline in net revenue, it still remained profitable. Net income fell from just over $1 million to approximately $650, 000. Given the current conditions of the economy, this result is fairly respectable with most of the decline being attributed to the collapse of consumer spending and the reduced demand of recycled raw materials.
Generally speaking, the company has approached this aspect of current economic conditions as one might think. It has slashed costs but is fully aware that it is operating in a position of strength as these same economic conditions improve. Although the opportunity may have past to maximize long-term profits, there does appear time to capitalize of the very likely gains that Industrial Services of America will reap in the not too distant future.
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