There was a lot of speculation that the sales of BAC, et al, were because the Geico trader retired. That's a great "explanation", but the truth is, raising cash in Buffet's world means exactly one thing: acquisition being targeted. What bigger achievement than to reinvigorate a vaunted American company? X is also about to make a major technical breakout when it surpasses its one year high this week.
Margins are about to be squeezed globally. Look out below. I warned ET and a fellow poster in particular on here named James Altucher in April 2010 steel stocks would sell-off. Same thing is going to happen March - April 2011.... Good Luck... and watch out below.
It would make more "sense" if he were to pay above $70/share, the ~3-year highs, for the thing. :eek:
Think profits in steel could rise more especially since Australia had all the weather problems and could not mine or ship the coal needed for steel production in asia...maybe supplies are getting squeezed.