SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Gold/Mining/Energy : Strictly: Drilling and oil-field services
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: Les H who wrote (21947)5/13/1998 6:10:00 PM
From: 007  Read Replies (2) of 95453
 
I'm not sure, but I believe MAVK buys most of their steel from NUE. NUE is the flagship minimill, which is a growing segment in the steel industry. The minimills use scrap steel, melt it down and pump out quality product at a lower cost than the big mills.

The effect of rising steel prices should hurt MAVK's margins while improving conditions for NSS and LSS since they produce their own steel.

Are steel prices rising even with the Asian imports? Do you know a site that tracks steel prices?

Regardless of the steel market, MAVK, NSS and LSS all tend to move together. The question is whether they are just out of favor now, or if the market is telling us something about the long-term health of their subsector (ie. increasing competition)?

I am concerned that it might be worse than it appears right now, so I view MAVK as a potential short-term trade if it lays in a nice double bottom.

But since I have these concerns, for a long-term position, I'd rather forego the bottom and buy after it breaks through that ton of resistance at 20. "Prove to me that you are really going to go up." If it does that, then it's probably safe to say things are positive and it will move up on improving sentiment and business conditions.
007
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News