Harsco Corp (NYSE:HSC)

Harsco Corp (HSC), a component of the S&P MidCap 400 Index, has been selling industrial products and services since 1850. Business segments sorted by revenue are: Metal processing 42%, Construction 34%, Railway 9%, plus a half a dozen smaller ventures. In Q3, segment results were mixed, while up slightly overall. Due to long lead times and contracted work, they seem to be a lagging indicator of economic activity, with 2010 possibly being their low point for profits, with expectations of $0.86/sh. They are following a strategy of expansion into the growing economies of Asia and Latin America and promoting all of the company’s various offerings to the existing customers of each segment. Their current portion of long-term debt was recently rolled over into a 2.7% 15-yr bond from the previous 7.25% paid. The recent $0.205 quarterly dividend declared marks their 243rd consecutive quarterly cash dividend. It appears to me that during recessions, the stock gets knocked down to a little over book value (1.1 to 1.2) and when times are better, it trades at about 2.4 times book. It’s currently only moved up to 1.4 times book, so between today and better days, there is about $30-$40 capital appreciation likely and a 3.3% dividend in the meantime.
Disclosure: I have taken a position in this name that I expect to be longer term.