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

To: E_K_S who wrote (43968)	8/16/2011 2:54:17 PM
From: JakeStraw	Read Replies (1) \| Respond to of 78523

Have you ever looked at UGP?

To: E_K_S who wrote (43968)	8/17/2011 12:22:34 AM
From: Spekulatius	1 Recommendation Read Replies (4) \| Respond to of 78523

re GGB - the stock is cheap by some metrics because their profitability right not is insufficient. their EBITDA margins are down from 20% in 2010 to 13%. I compared this wuith class act NUE (which is very low overhead and hence can prosper with lower margins) which is at 16% for a capital lighter operating (mini-mills). I believe that the high real is hurting them and I don't think that this will abate any time soon. I also think it is a stretch to put GGB into a "Foodbasket" just because they make some poles or wires for farming. it is probably a minuscule part of their operations. I sort of like NUE here - they are beneficiary of the weak US$ a.k. "Clownbuck" have a strong balance sheet and pay a nice dividend. PKX is worth a shot too. Both NUE and PKX are probably some of the best steel companies in the world, available at fairly reasonable prices.