US Steel is a Steal

Tags: Rio Tinto, RTP, X, Steel, Metals, US Steel, BHP, RTP, X
8 Nov 9:50am
Posted by flaljee
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US Steel (X) is sitting at its 200 day moving average. The stock is off over 20% from its summer highs, but this is not indicative of their business. Demand for steel has never been greater and the company has its own iron ore production - which means it does not have to outsource this commodity and as a result, can keep its margins relatively higher. The only caveat is that US Steel makes low end, lower margins products. With consolidation still very much an option as indicated by the BHP Biliton bid for Rio Tinto (RTP), it is possible that US Steel might be snapped up. Regardless, I would buy the stock here.


-- Faisal Laljee
Full Disclosure: I do not own X but my position can change anytime without notice.
Update: I bought the stock on Friday Nov 9th, but my position can change anytime without notice.

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flaljee

StocksandBlogs.com provides stock tips, equity research and markets commentary. This blog gives you money making investment ideas that can be applied to your financial portfolio, whether you are a long-term investor or looking for a quick trade. From Wall Street to Walmart, Investing to Intel and Commodities to Coffee, you will find it all here. My name is Faisal Laljee and you can email me anytime. To check how my stock picks have panned out, check out my performance using Performance Tracker. Disclaimer: The stock picks and trades listed on this blog are for educational purpose only. You should do your own research before making a trade. This blog, its affiliates, partners or authors are not responsible or liable for any losses you might sustain from the opinions stated.

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