James,
WHX - Just my thoughts.
1. There are many uncertain aspects to the company. The strike, the new EPA standards, the BV, and the company's ability to profit. I agree that value is worth more than the per share price, but it may or may not be worth the full $28. Very often it costs as more to close an operation than its value and the company has to pay someone to take it. The land has major value, but some of the buildings, equipment, and other may be nothing but scrap or trash.
2. I wouldn't gamble on this stock providing a 25-30% return in six months because I feel it a gamble. It could sit at the $8 level for a very long time and it could fall. If the strike is resolved, there would likely be some upward movement, but IMO the funds would have to see profits to get in and it will take that money to cause any major move. There are too many stocks out there that will provide that 25-30% with less risk.
3. The U.S. steel industry has major problems and don't feel comfortable investing in the industry.
Not trashing, just giving MO.
Ron
|
