Gerdau Ameristeel Is a Hot Stock

Gerdau Ameristeel(GNA Quote), which reported earnings on Monday up 22% percent over the first quarter a year ago, is a hot stock.

Even the leading shareholder of Gerdau Ameristeel, Gerdau SA(GGB Quote) -- the Brazilian steel company that owns 66% of GNA -- could be an attractive investment in the steel industry.

Gerdau SA has an enterprise value of only 3.8 times the estimated 2009 EBITDA cash flow measure, which is extremely low.

Compare this to the 50 largest global steel stocks, which on average trade at eight times 2009 projected cash flow -- more than double Gerdau SA's valuation. The parent company certainly looks attractive. ...