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Gold/Mining/Energy : Strictly: Drilling and oil-field services -- Ignore unavailable to you. Want to Upgrade?

To: Les H who wrote (21947)	5/13/1998 6:10:00 PM
From: 007	Read Replies (2) \| Respond to 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