David Fried, Buyback Premium Portfolio - Siderurgica (SID) - Holly Corporation (HOC) - BJ Services Company (BJS)

David Fried, editor of the Buyback Premium Portfolio, offers information on companies that he and his team believe will outperform the market as a group. Take a look at a few of the names this featured expert highlights in his monthly update. Learn about a Brazilian steelmaker and two companies from the oil space. Mid-September Update from September 15 New Premium Portfolio Recommendations include: Brazilian steelmaker CO Siderurgica (SID), also known as Companhia Siderúrgica Nacional (CSN), is a leading global steel producer with operations in Latin America, North America, and Europe. The company is a fully integrated steel producer, the largest coated steel producer in Brazil, with current capacity of 21.5 million tons of iron ore, 5.6 million tons of crude steel, 5.1 million tons of rolled products and 2.9 million tons of coated steel capacity. Integrated steelworks means that CSN uses its own sources of iron ore and electrical power supply, controls logistics assets -- ports and railways -- that enable a cost-efficient and reliable loading and unloading of slabs and ore for deep sea vessels. All of this paves the way for CSN to be one of the most cost competitive steel producers in the world. CSN has had operations in the U.S. since 2001 through its wholly-owned subsidiary CSN LLC (formerly known as Heartland Steel) at Terre Haute, Indiana. CSN LLC has an annual production capacity of 1 million tons of cold-rolled, galvanized and hot rolled products. In early August, Wheeling-Pittsburgh Corp. announced it was going to merge with CSN; that merger is opposed by the United Steelworkers, which prefers a merger with Ill.-based steel supplier Esmark Inc. A CSN/Wheeling-Pitt merger would create a company that has the capacity to produce more than 5 million tons of cold-rolled and hot-dipped galvanized steel a year. CSN reduced its shares outstanding by 10% in the past 12 months. Independent petroleum refiner and marketer Holly Corporation (HOC) produces light products such as gasoline, diesel fuel and jet fuel. Holly operates through its subsidiaries an 82,000 barrels per day (bpd) refinery located in Artesia, New Mexico and a 26,000 bpd refinery in Woods Cross, Utah. Holly also owns a 45% interest in Holly Energy Partners, L.P. An independent refiner focuses on refining and marketing petroleum products but does not have oil and gas production operations -- unlike the large "integrated" companies such as Exxon Mobil and Chevron, which produce, refine and market energy products. Forbes Magazine named Holly one of America's best managed companies for 2005 (the announcement was in Jan. 2006), and recognized Holly's five-year annualized total return of 80.7% as the best in the oil and gas industry. Forbes selects the 400 best managed big companies in America ($1 billion or more in revenues) for its Forbes Platinum 400 list, evaluating sales and earnings growth, stock market returns, debt to total capital, forecasts for long-term earnings, accounting and governance practices, financial condition, earnings quality, innovation, efficiency and market leadership. In early August, Holly announced that improved refining margins fueled a 78% increase in second-quarter profit, which rose to $93.1 million, or $1.60 a share, from $52.4 million, or 81 cents a share, a year earlier. Excluding discontinued operations, earnings would have been $1.51 a share, vs. 79 cents a share a year ago. Revenue increased 54% to $1.12 billion from last year's $728.7 million, due primarily to higher refined product prices. In the past 12 months, shares outstanding declined 9%. BJ Services Company (BJS) is a leading provider of pressure pumping and other oilfield services to the petroleum industry. Based in Houston, it has customers in most of the major oil and natural gas producing regions of the U.S., Canada, Latin America, Europe, Asia, Africa and the Middle East. In late July, BJS reported a gusher in 3rd quarter earnings year over year. Net income for the quarter ended June 30, 2006 was $212.9 million, or $0.67 per diluted share. Third quarter diluted earnings per share improved 91% compared to the $0.35 per diluted share for the third quarter of fiscal 2005 and up 8% compared to the $0.62 per diluted share for the previous quarter. The company is also a robust repurchaser, with a late-May announcement increasing the repurchase authority by $1 billion, supplementing some $270 million available to spend from prior authorizations. Commenting on the authorization, CEO J. W. Stewart said, "The expansion of the repurchase program allows the company to continue utilizing its free cash flow and leverage capacity to further repurchase shares and to enhance long-term shareholder value while maintaining considerable financial flexibility to pursue growth opportunities.” Outstanding shares decreased 7.6% in the past 12 months. This article highlights the commentary of David R. Fried for the Zacks.com audience. David R. Fried provides insightful analysis, market commentary, and favorite recommendations on a timely basis in "Buyback Premium Portfolio" newsletter. Try it free for 30 days and see if you can improve your investment performance. Learn more about "Buyback Premium Portfolio" and 30-Day Free Trial. And get immediate access to current issues and special reports. Click here now. Here's How You Can Profit from the Pros Find out what other leading experts are saying about the market. And what stocks they are recommending. For free. 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