severfield rowen is a stock we’ve held on and off for a few years now. They are a steel manufacturing company. They came to our attention when we noticed that the market had factored in the economic down turn twice on their share price. Our thinking was that once the market realised their mistake the shares would go considerable up. Which they did and we made a healthy profit. We than made the mistake of buying back in at around 15% less than our previous sale. At this point the continued un-ease at the state of the economy added to SFR themselves saying profits would be down for the next few years hit the share price a lot and we ended up 30% down. A while after that the market again factored in the un-ease at the state of the economy and the shares fell to 150p. Yet again we saw what others hadn’t that nothing had changed for sfr and the reason for the drop in share price had already been factored in at 190p. So we bought a 2nd holding in SFR. We sold this 2nd holding when the price returned to 190p.

As SFR pay reasonable dividends and seem in no immediate risk of further reduced profits or market share. We are happy to keep this as a long term holding. Our target price being 300p within the next 3 years.