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

To: scbeachbum who wrote (71123)	9/14/2022 4:20:38 PM
From: Spekulatius	Read Replies (1) \| Respond to of 78748

I think some of energy intensive and NG dependent business will shut down for good. Those that can will switch to diesel/crude inputs (chemical industry) Think Aluminum smelters, some base chemicals etc.. Steel is probably going to survive but may end with a permanent cost disadvantage relative to the US due to energy input costs. Personally I don't like the steel sector and would rather buy something like WLK (chemicals).l I just bought a starter position in WRK (cardboard/packaging) which also might be an indirect beneficiary and also benefit from better market structure (WRK and IP combined control more than 50% of the containerboard/packaging markets) and they have FCF yield close to 15% WRK hasn't been the best managed in the past and the industry has been difficult, but I think the increased consolidation has reduced the risk of price wars and might lead to higher margins down the road (so far, gross margins have not improved). Paper/containerboard is increasingly used as a packaging material because it is easier to recycle relative to plastics.