Short US Steel Maker

Discussion in 'Stocks' started by codedeep007, Jul 29, 2008.

  1. This is the bottom for steel stocks - you should be buying not selling.

    Through the 90s the industry was depressed courtesy low cost steel from poland and the ukraine. That excess supply has been taken out of the Market.

    The input costs (iron ore, energy) have doubled, so they pass the costs on directly. NO one in this industry has long term contracts. Therefore, they will all have to price these ongoing cost increases into their jobs.

    If you work in fabricating, which I do, there is a 10 day window to quote all jobs and you put that in your quote- you get a p.o and place your steel order asap otherwise the price goes up and they do not guarantee your price past 10 days.

    All the fundamentals aside- do you want to bet against a guy (Heebner or Gendell) who owns $500 million in US Steel stock (Gendell in this case) or Heebner, who has made 40% a year for the last 5 years in a multi billion dollar mutual fund (CGM Focus)?

    You could argue the steel stocks were overbought in May (which I did), and that was true until yesterday.

    Now they are a screaming buy.

    In short - its called inflation.
    #11     Jul 30, 2008
  2. the only winner in my portfolio has been a steel company. GSI
    #12     Jul 30, 2008
  3. #13     Jul 31, 2008
  4. S2007S


    Trading at


    DOWN over 8% since I said short.
    #14     Aug 4, 2008
  5. S2007S


    new intraday lows at $143.50.

    Down $20 from my call and probably going down alot further.
    #15     Aug 4, 2008
  6. Said short or went short?

    I am still long from $157.75.
    #16     Aug 4, 2008
  7. S2007S


    Why didnt you sell it at $160+
    #17     Aug 4, 2008
  8. Not getting a sell signal yet. Will sell when my system takes me out of the trade. Also long SCHN RS ZEUS NNBR.

    So are you short X or just making calls again and paper trading?
    #18     Aug 4, 2008
  9. S2007S


    I am NOT short X, I do not short, I buy the inverse ETFS like SMN, DUG, DEE and DTO.
    #19     Aug 4, 2008
  10. Closed out most of my steel/material longs with losses the past 2 weeks. Congrats to all shorts. Still long ZEUS GNA X. Selling X tomorrow at a loss, holding ZEUS and GNA but will likely also have to exit soon.
    #20     Aug 14, 2008