Hudson Securities Lowers Estimates on General Steel Holdings (GSI)

Hudson Securities is out with a research report this morning, where it reiterates its Hold rating on General Steel Holdings GSI; it did not provide a price target on the stock. The Hudson analysts said that, due to increases in commodity prices, they are lowering their EPS estimate for the upcoming quarter to $-0.01 from $0.01. This reflects a 7.5% increase in rebar prices during the quarter, a 9.1% increase in raw iron prices, and a 12.5% increase in coking coal prices sequentially. The analysts said that they were encouraged by GSI’s visibility into 70% of its forward 12-month revenues and that during the conference call they would be listening for drivers for sustainable top line growth and manageable spread between ASP and COGS. They would also look for some insight whether the company plans to leverage its cash position for potential M&A activities.