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Strategies & Market Trends : YEEHAW CANDIDATES -- Ignore unavailable to you. Want to Upgrade?

To: Ken W who wrote (2020)	5/25/2003 9:35:13 PM
From: Sergio H	Read Replies (1) \| Respond to of 23958

Ken, I decided to ride it out on GEG. No sale. Call it a lack of discipline. I'm not worried though. We were discussing steel and expected policy from Bush in Sept. A recent article: story.news.yahoo.com. US Steel Cos Want Full 3 Yrs Of Safeguard Import Tariff Thu May 22, 6:06 PM ET By Campion Walsh, Of DOW JONES NEWSWIRES WASHINGTON (Dow Jones)--U.S. steel industry leaders Thursday called for President George W. Bush (news - web sites)'s administration to leave "safeguard" steel-import tariffs in place for a full three-year term running until March 2005. In testimony before the congressional steel caucus, the heads of U.S. Steel Corp. , International Steel Group , Ispat Inland Inc. (NYSE:IST - News) , and steel labor unions said prices of their products remain well below 20-year averages since March 5, 2002, when Bush imposed the safeguard tariffs of up to 30% under Section 201 of U.S. trade law. U.S. Steel Chief Executive Thomas Usher told the caucus that only a small fraction of the steel market was affected by the tariffs and U.S. steel imports were actually up significantly last year after the tariffs took effect. "There is real concern that any weakening of the president's plan will lead the industry right back into crisis," Usher said in prepared remarks. The Bush administration is due to decide by September whether market conditions warrant leaving the Section 201 tariffs in place for another year and a half. The administration has described the tariffs as temporary protection from a sharp increase in imports, a measure meant to give the U.S. steel sector time to scale back its inefficient capacity, also known as rationalization. Speaking to reporters during a break in the hearing, Usher said the industry needs the full three years of relief even though it's already seeing signs of rationalization, including a labor union pact this week clearing the way for U.S. Steel to acquire National Steel. That merger will make U.S. Steel the largest steel producer in the country and the fifth-largest in the world. "I think there's more opportunity for additional rationalization," Usher said, adding that continued Section 201 tariffs will buy more time for the industry. "It was our expectation when we began this process of putting companies together and doing the kind of consolidation the administration requested, we were going to have a three-year period where we had some relative stability in the market." The U.S. Steel CEO said there are still a lot of companies that are "somewhat vulnerable" and would be candidates for whole or partial acquisition, but he declined to specify which ones. Usher said he supports Bush's tax-cut proposals, and particularly measures to spur investment, as U.S. economic growth is crucial for the industry. "The fundamental problem that all steel companies have today is just that the economy hasn't grown at the rate we'd all like to see it grow," he said. "Nothing would make us healthier than to have an economy growing at 3%-4% or up." Firms Say Tariffs Bolster US Trade-Negotiating Stance International Steel Group Chairman Wilbur Ross put the steel sector's woes in the context of the rapid decline of U.S. manufacturing and the ballooning trade deficit, which is on course to reach $500 billion in 2003, about 5% of the country's annual GDP (news - web sites). "No country has ever experienced chronic trade deficits as high as 5% without collapsing, and there is no reason to believe that we would be the exception," Ross told the caucus. Ispat Inland CEO Peter Southwick called on supportive members of Congress to testify at International Trade Commission hearings in June and July to consider whether the Section 201 tariffs should be extended for a second 18-month phase. "The 201 tariffs have helped jump-start the international discussions at the OECD (Organization for Economic Cooperation and Development) to address the root causes of the U.S. and global steel crisis," Southwick said, adding that the tariffs' impact on U.S. consumers has been "modest." The OECD talks involve long-discussed goals of closing down much of the world's inefficient steel-production capacity and a more-recent initiative to ban most steel sector subsidies. Mark Glyptis, president of the Independent Steelworkers Union, said the U.S. shouldn't give in to countries trying to use World Trade Organization (news - web sites) procedures to roll back the steel import tariffs. Glyptis noted that while these safeguard tariffs were as high as 30% in the first year, they have dropped to a high of 24% this year and are due to drop to a ceiling of 18% next March. Any easing of the U.S. stance is sure to send more of the country's smaller steelmakers down the path of bankrupt Weirton Steel Corp. and Wheeling- Pittsburgh Steel (WHX.N) - to the advantage of Chinese firms building new steel mills with low labor and environmental standards, Glyptis said.

To: Ken W who wrote (2020)	5/25/2003 9:39:25 PM
From: JoeinIowa	Read Replies (1) \| Respond to of 23958

Ken, The market is a very odd place these days. Typically the small cap stocks did not have their day until the large caps had a huge rally. Now it is the small caps that seem the place to be and the number of them making just huge moves seems a little unreal. I am not really sure what to attribute this new way of investing to? Desperate times call for desperate investing? People are willing to take a quick shot at doubling their money but won't hold anything long term. The best bet seems to go with the flow. Joe PS I am a little afraid to ask what you bought from GORX? LOL.