Sims Metal (SGM) $10.58
Volatile markets and an opaque industry mean Sims Metal Management is often viewed as a trading stock. But it presents a rare opportunity where short-term trading coincides with longer-term value. SGM has led in adapting to China’s environmental controls and is well positioned to meet the requirements. As a scrap broker/trader, volumes remain the key driver of profitability and generally traded favourably across CY2018, a factor we expect will aid profitability in FY2019.