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Hide not your talents.
They for use were made.
What's a sundial in the shade?
- Benjamin Franklin -
M&A activity in the Steel industry
When analyzing the steel industry against other industries, you would be shocked to learn how small the largest steel company is in comparison to the size of global steel industry. Mittal Steel is the largest steel company, currently only holding 12% of the global steel making capacity. It has risen from relative obscurity in southeast asia to become 'the' steel company of the future.Originally posted by peanuts View Post
Other industries similar to Steel (Aluminum, Copper, etc) are structured much differently. The majority of the market share is controlled by a few players. Aluminum, for example, has Alcoa, Alcan, and Kaiser and a few others which make up nearly 85% of the total industry. The steel industy needs to consolidate like these other industries.
The consolidation trend within the industry has already begun. LTV and Bethlehem Steel were purchased by ISG, then Mittal bought ISG. Gerdau Ameristeel is steadily gobbling up mini-mills across the US. Nucor is doing the same. PCP bought a high performance alloy producer, and recently, NSS was bought by IPSCO. Bankruptcies in the 90's and early 00's have left many companies in such financial conditions where a buyout is the only thing that could save them. Companies see that they are hurting the entire industry by competing on price with other firms. Large scale orders, and a wide variety of products will be key to future success in the industry. Consolidation is the only answer to the sustainability of the recent steel industry successes.
Below are my opinions regarding which companies will acquire and which companies will be targets as the trend of consolidation continues in the steel industry:
Acquirers:
ATI
CGA
GGB + GNA
IPS
MT
NUE
PCP
PKX
SID
TS
X
Targets:
AKS
CHAP
NSS
NWPX
NX
OS
SCHN
SIM
STLD
TKR
TXI
USAP
WPSC
ZEUSHide not your talents.
They for use were made.
What's a sundial in the shade?
- Benjamin FranklinComment
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ATI is the #1 stock in the POTY celebrity division having appreciated 73.05% since 1/03/06. It was picked by our old friend Jim Cramer.
-------------billyjoeComment
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On my watchlist for the week:
longs:
AP
BTJ
CECE
GMRK (currently own)
NGA
TGC
TGIS
VSTY
VSR
shorts:
BW
SLW
SWHCHide not your talents.
They for use were made.
What's a sundial in the shade?
- Benjamin FranklinComment
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SWHC made a bearish engulfing bar today. Nice short pick, Peanuts.Comment
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It does look like SWHC is running outta steam here...Wouldn't be surprised to see a 15-20% correction...But longer term I still like it...Doug(IIC)"Trade What Is Happening...Not What You Think Is Gonna Happen"
Find Tomorrow's Winners At SharpTraders.com
Follow Me On TwitterComment
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also watching
I'm considering a long position in HXL as well
The SWHC short may be initiated today. I'll be watching intraday movements. The action in this could be surprising... might shoot up to 15+ very quickly...Hide not your talents.
They for use were made.
What's a sundial in the shade?
- Benjamin FranklinComment
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I wonder why he picked ATI? I know the real reason for its successful rise in mkt cap this year, but I wonder if he does...Originally posted by New-born baby View Post
Hide not your talents.
They for use were made.
What's a sundial in the shade?
- Benjamin FranklinComment
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Good luck. I'm looking for an entry once it breaches $12.50 and holds it. I thought it was going to do it this morning earlier but didn't hold.Originally posted by peanuts View PostTHE SKIRACER'S EDGE: MAKE THE EDGE IN YOUR FAVOR
Comment
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covered at 12.31Originally posted by peanuts View Post
I will continue to watch.
Hide not your talents.
They for use were made.
What's a sundial in the shade?
- Benjamin FranklinComment
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There was a lot of buying last wednesday in the range of 12.10 to 12.60, and those traders have not shown up today... yet!Originally posted by skiracer View Post
Are you looking to go long or short?Hide not your talents.
They for use were made.
What's a sundial in the shade?
- Benjamin FranklinComment
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Q
This is just not working out for me the way I anticipated. I've exited the position at $8.70. The gain on my SWHC short is negated by this loss in Q. The good part is now I've got all this buying power... looks to be a busy day!Originally posted by peanuts View PostHide not your talents.
They for use were made.
What's a sundial in the shade?
- Benjamin FranklinComment
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I just shorted it @ $12.46.THE SKIRACER'S EDGE: MAKE THE EDGE IN YOUR FAVOR
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