On the surface, seems like a very strong company. Outstanding returns on invested capital and equity, great balance sheet with virtually no debt, and pretty strong operating margins.
This is not my cup of tea when it comes to an investment. I typically try to avoid the commodity based, heavily cyclical type companies, particularly small caps. They require extensive knowledge of the underlying market and commodity they track, and for reasons absolutely out of their control can face large revenue and earnings declines, which is precisely what we are seeing right now. Weaker economic conditions are reducing steel demand, along with the fact that Metallurgical Coal prices are falling as well.
Solid company. Generates a nice chunk of free cash flow. But one I'm more than happy watching from the sidelines.