USX - US Steel Group
I know I have mentioned this one before, and I own the stock at about this price, only because of a covered call position I put on.
Many are saying that the environment for steel producers is weakening with Mr. G putting the brakes on the economy, and more foreign competition coming onstream. Perhaps true.
One upside (significant IMHO) is that, according to Value Line, "the Group is benefiting from improving prices in the oil patch, as tubular steels comprise a larger share of this producer's sales mix than is the case at any other U.S. integrated mill." JP Morgan likes Big Steel, and has mentioned the possibility that they may spin out their oil field tubular goods operation, saying that this part of the operation would be valued at $11/share.
Stock yields above 4.5%, and is trading close to a 52 week low.
As with Paul, I've been wrong many, many times before, but the risk reward on this one looks pretty good IMHO. |
