5 Best Shipping Stocks To Invest In 2015

5 Best Shipping Stocks To Invest In 2015: Gerdau SA (GGB)

Gerdau S.A. (Gerdau), incorporated on November 20, 1961, is a producer of long rolled steel. Gerdau operates steel mills that produce steel by direct iron-ore reduction (DRI) in blast furnaces and in electric arc furnaces (EAF). In Brazil, the Company operates four integrated steel mills, including its mill, Acominas mill, an integrated steel mill located in the state of Minas Gerais. It has a total of 60 steel producing units globally, including joint ventures and associate companies. The joint ventures include a unit located in the United States for the production of flat rolled steel and another unit in India. The associate companies are Aceros Corsa in Mexico; Corporacion Centroamericana del Acero in Guatemala, and Industrias Nacionales (INCA) in the Dominican Republic. Through its subsidiaries and affiliates, the Company also engages in other activities related to the production and sale of steel products, including reforestation, electric power generation projects; c oking coal, iron ore and pig iron production, as well as fab shops and downstream operations. On August 12, 2010, Gerdau acquired the remaining 49.1% interest in the Cleary Holdings Corp. On October 21, 2010, Gerdau, through its wholly owned subsidiary Gerdau Ameristeel acquired TAMCO Steel.

Gerdau offers a range of steel products, which are manufactured according to a variety of customer specifications. Its product mix includes crude steel (slabs, blooms and billets) sold to rolling mills, finished products for the construction industry, such as rods and structural bars, finished products for industry, such as commercial rolled steel bars and machine wire and products for farming and agriculture, such as poles, smooth wire and barbed wire. The Company also produces specialty steel products utilizing technology and normally with a certain degree of customization for the manufacture of tools and machinery, chains, locks and springs, for the automotive ! and mechan ical industries. As of December 31, 2010, the Company operat! ed 19 steel production units in the United States and Canada through its principal entity, Gerdau Ameristeel Corporation. Gerdau operates in four business segments: Brazil (Brazil Business Operation), includes Brazils operations, except specialty steel; North America (North America Business Operation), includes all North American operations, except Mexico and specialty steel; Latin America (Latin America Business Operation), includes all Latin American operations, except for Brazil, and Specialty Steel (Specialty Steel Business Operation), includes the specialty steel operations in Brazil, Spain and the United States.

Crude Steel (Billets, Blooms and Slabs)

Crude steel products include billets, blooms and slabs. Billets are bars from square sections of long steel that serve as inputs for the production of wire rod, rebars and merchant bars. They are the main product of the Acominas mill. Blooms are used to manufacture products, such as springs, f orged parts, heavy structural shapes and seamless tubes. Slabs are used in the steel industry for the rolling of a range of flat rolled products. Slabs are mainly used to produce hot and cold rolled coils, heavy slabs and profiles. Crude steel products are produced using either the continuous casting or conventional process.

Common Long Rolled Products

Common long rolled products represent a major portion of the Companys production. The Companys main long rolled products include rebars, merchant bars and profiles, which are used mainly by the construction and manufacturing industries.

Drawn Products

Drawn products include barbed and barbless fence wire, galvanized wire, fences, concrete reinforcing wire mesh, nails and clamps. These products are not exported and are sold to the manufacturing, construction and agricultural industries.

Specialty Steel Products

Gerdau produces specialt! y and st ! ainless steel used in tools and machinery, chains, fasteners! , railroa! d spikes and special coil steel at its Acos Villares and Piratini units in Brazil, at Corporacion Sidenor units in Spain and at the MacSteel units in the United States. In the United States, Gerdau Ameristeel produces special sections, such as grader blades, smelter bars, light rails, super light I-beams, elevator guide rails and other products that are made on demand for the Companys clients, which are mainly manufacturers. It is a joint venture with the Kalyani Group in India, in which Gerdau has a 73.2% interest in the joint venture.

Flat Products

Gerdaus Acominas mill produces slabs, which are rolled into flat products, such as hot and cold steel coils, heavy plates and profiles. In addition, the Companys distribution subsidiary, Comercial Gerdau, resells flat steel products manufactured by other Brazilian steel producers. Gerdau Ameristeel also supplies flat steel to its customers through its joint venture Gallatin located in Kentucky . Gallatin is a joint venture with ArcelorMittal, Canada, a flat steel producer, and has nominal installed capacity of 1.4 million tons of flat steel per year.

The Company competes with Commercial Metals Company, Nucor Corporation, Steel Dynamics Inc., ArcelorMittal Inc., ArcelorMittal Brasil, Usiminas Group and CSN.

Advisors' Opinion:

• [By Jeff Reeves]

  Gerdau (GGB) is one of the best ways to play this trend if you believe in a commodities shift. The Brazilian steel company trades for a forward P/E of about 5, and a price/sales of just a bit more than 0.7. Thats an incredible valuation.

source from Top Penny Stocks For 2015:http://www.seekpennystocks.com/5-best-shipping-stocks-to-invest-in-2015.html