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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: E_K_S who wrote (31769)	8/14/2008 10:24:27 AM
From: Paul Senior	Respond to of 78530

I'll take a few more GGB shares also. Perhaps typical scene for a cyclical: boom times for steel prices and steel companies, and p/e of stocks at low levels. Does seem that oil build out in Brazil will continue apace though. And will require lots of steel. Further, as regards GGB USA business, the low dollar vs. Euro (even after recent dollar gains) seems to me to help curb imported steel. Expensive shipping costs-from what I read - also add to dissuade exports into USA. I am holding Gerdau Ameristeel shares here. biz.yahoo.com

To: E_K_S who wrote (31769)	8/26/2008 10:31:07 AM
From: E_K_S	Read Replies (1) \| Respond to of 78530

UBS Upgrades Brazil Steel Cos To Buy After Correction 8/26/2008 DOW JONES NEWSWIRES SAO PAULO (Dow Jones)--UBS Pactual upgraded Brazilian steelmakers to buy after a sharp decline in prices based on an overly pessimistic view, it said in a report Tuesday. "Our stress test indicates current prices imply steel prices as much as 35% lower than current, which we view as unlikely due to scarcity of new steel capacity and tight raw material supply," it said. In the long term, UBS believes Brazilian steel stocks will continue to generate strong cash flows backed by high steel prices. UBS raised Companhia Siderurgica Nacional (SID), or CSN, and Usiminas (USIM5.BR) to buy from neutral, while it reiterated its buy rating and industry top pick status for Gerdau (GGB). The Gerdau target price is 47.50 Brazilian reals ($29.14). The stock was down 0.5% at BRL28.65 in early trade. The target price for CSN is BRL75.00. The stock was down 1.5% at BRL52.63 in early trade. Usiminas' target price is BRL83.33. The stock was down BRL54.50 at the start of trade. -By Alastair Stewart; Dow Jones Newswires; 5511 2847-4520; alastair.stewart@dowjones.com Copyright (c) 2008 Dow Jones & Company, Inc. ============================================================= This analysts sees these stocks to be significantly undervalued from their current prices. I am not that optimistic for such a significant upside target but do think the recent correction was overdone. EKS