Logos Stick said:
What do you think of the sale. You think it goes through?
I read Shapiro was working to try to push it through as it does not sound good for the company if it doesn't.
I was a longtime CLF stockholder and have a friend who works there. I wanted it for CLF, if not for the company itself, then for purely national strategic implications. I've heard Nippon will have a purely US member board upon ownership, but I still hate seeing the profits of our steel industry ultimately ending up in another country.
I do think the sale goes through, as of right now. But I honestly haven't done a deep enough dive to say for sure. If the sale fails, I still like the upside in the stock as other bidders come back. Maybe it does ultimately sell to CLF. Who knows.
But the headwinds facing steel are legitimate. From a very high level view, what's happening in China real estate will surpass what happened to Spain. They own 54% of world steel production, over 10x what the US does. And steel prices have collapsed. They are flooding the world market and will continue to. US companies can be healthy and still be in trouble, because supply is expected to be far greater than demand for some time. Couple that with an expected pullback in US construction across all sectors, and steel can be bearish for years.
But X stock is undervalued currently even in that scenario after this week's selloff. The X play is purely from loving the R/R on that one last move up. Defined stop. Defined target.
"H-A: In return for the flattery, can you reduce the size of your signature? It's the only part of your posts that don't add value. In its' place, just put "I'm an investing savant, and make no apologies for it", as oldarmy1 would do."
- I Bleed Maroon (distracted easily by signatures)