I normally never invest in an industry of which I am part. My company competes with RS (Reliance steel). Their product mix is similar to mine except theirs is on a much larger scale. My company's profit went down in the second quarter compared to the first quarter. If you look at a RS chart you will see their stock has gone down quite a bit from the month of May. The third quarter for my company had an increase in sales of more than 30% and a 60% increase in profits. I suspect RS will have similar results which could give a nice spike to the stock. They report earnings on 10/19. Take it for what it's worth, but it might be a nice profit for those more adventurous.
Since you normally "never" invest in steel stocks, then I guess you wouldn't be in the market for any Mexican steel. Ole'
Actually, I buy most of my stainless steel from a company called Mexinox. It used to be mexican owned but is now owned by the Germans (Thyssen-Krupp), but all of the steel produced is from Mexico.
Let's see what happens with the conference call at 8am pt. They even did better than that. They had .27 per share in earnings that went to lifo. That is still earnings. All it does is reduce your taxes. The stock is still going to move up over the next few days.
I guess you guys are in the dark about RS. There was heavy speculation for months that it was going to be bought out at a nice premium. The stock would rip on days that the steel sector was dumping. Now it's the other way around, as the buyout is being priced out. No "Surprise" or mystery there. The chart reflects that, speculative parabolic rise and then pullback.
If that were the case then what changed? Are you saying their earnings caused this speculation to cease?
The conference call is very positive. The stock has moved up as the conference call continues. If you're in the stock stay in it.
Hydro I just want to say one thing. I agree with most of your posts but you are just plain wrong on the speculation. This is a small industry and if there was a specualtive buy on RS I would have heard about it long ago. I think you are mixing up the possible speculative buy of X (us steel). RS has always been the best run company in my industry for as long as I can remember, and there is little doubt they will continue to be the best for a number of years into the future. Their stock is extremely cheap right now, but there will come a point in the relative near future where it will be high. The advantage I have is I will know WHEN that is.