Have Steel Stocks Bottomed?
Of the stocks in the steel sector Mastery is most intrigued by Steel Dynamics (STLD), U.S. Steel Corp (X) and AK Steel (AKS). X and AKS have huge short interest and have been horrible investments in the past 12 months. The exception to would be STLD which is holding up well. The steel sector is out of favor with Wall Street, that's why we want in.
United States Steel Corp (X) is trading at $18.04 and its shares are 12% from its 52-week low. The Big X has a massive 30% short interest and its stock is down 24% YTD.
AK Steel Holding Corp (AKS) is trading at $3.38 and its shares are 18% from its 52-week low. AKS is also down 24% YTD and carries a 32% short interest.
Steel Dynamics Inc (STLD) is trading at $15.03 and near the top of its 12 month range. STLD short interest is tiny, at 4%. STLD is up 10% YTD, beating X and AKS by a landslide.
Despite the terrible performance of X and AKS they have finally bottomed. Both of those stocks have rebounded in the past month so it appears the worst could be over. Steel stocks have been killed in the past two years thanks to a slow worldwide economy and excess production capacity. This has caused steel prices to drop and everyone has enjoyed it but big steel.
Mastery expects the stock pickers to finally take notice of this sector and with such high short interest the tide could turn. Then again you could argue the shorts are looking for a winning bet so maybe X and AKS continue to suffer. However one look at the charts and it's clear the shorts are losing the battle in AKS and X. If you are going to play this bet expect volatility but we believe the worst is behind us.
Best of the Blogs
Scanning and identifying the best blog entries every hour
- Guest Post: "Nothing But Cattle In An Industrial Processing Facility" | ZeroHedge
- Mapping Yellen and the Global Landscape | Financial Sense
- Doctors Accuse White House Of Lying To Justify "Collateral Damage" In Kabul Hospital Bombing | ZeroHedge
- World's Largest Shipowners To Abandon Greece Ahead Of Major Tax Hike | ZeroHedge
- Gundlach Explains Why The Market Hasn't Crashed Yet: "People Are Holding And Hoping" | ZeroHedge
- How The World Views Obama's "ISIS Strategy" | ZeroHedge
- Inside A Mid-East Coup: A Closer Look At The Russia-Iran Power Play | ZeroHedge
The most relevant financial news and articles from the Internets
- Estate agents say this is London's... | Business Insider
- The Latest: Dolphins cornerback Grimes hurts right knee | Business Insider
- More police refusing to name shooters for fear of... | Business Insider
- Several VW engineers admit to installing cheat device... | Business Insider
- Keuchel wins 20th, Astros set runs record, rout D-backs... | Business Insider
- Meet Val the bartender: Hillary Clinton does an 'SNL... | Business Insider
- The 33 most competitive countries in the world | Business Insider