Sector Action

[peanuts]

Peanuts, maybe this is why IP has been on crack as of late...

Runner, though I would seriously doubt that Steel has a significant effect on the Paper industry, and vice versa, I would also, at the same time, suggest that all basic commodities ride a common tide. Paper and Steel have seen common results, and dividing them is leading to folly.

This article may be a clue as to why Steel and Paper have been hot recently...

Steel sector gets trade action it sought on China

By Laura Mandaro, MarketWatch
Last Update: 4:04 PM ET Feb 2, 2007

SAN FRANCISCO (MarketWatch) -- Heads of the nation's biggest steel companies heard their repeated calls for trade action on China answered Friday, with the U.S. saying it would file a complaint at the World Trade Organization over China's subsidies to its materials sector.
U.S. Trade Representative Susan Schwab said the Bush Administration's case would charge China with illegal export subsidies for factory goods including steel, wood and paper. See full story.
The filing is good news for the sector, said independent steel industry analyst Michelle Applebaum.
Flush inventories have been the biggest reason for the recent downturn in U.S. steel prices, she said, "and they got flush because of imports."
China tends to pay attention to trade cases, she said, though she cautioned, "these types of things start and don't always end."
The U.S. steel sector, joined by Luxembourg-based Arcelor Mittal, has complained for months that the Chinese steel industry has been flooding the U.S. market with cheap steel in violation of global trade laws restricting dumping -- or selling products at below cost -- and subsidization of its industries.
The industry's main lobbying group, the American Iron and Steel Institute, on Friday called the filing an "important first step" but also urged more enforcement of current duties on Chinese imports.
"The filing, while significant, only touches the tip of the iceberg of the full range of subsidies being provided to steel and other manufacturing industries in China," said Nancy Gravatt, spokeswoman for the AISI.
On Tuesday, Arcelor-Mittal executive Louis Schorsch had asked Congress and the White House to "focus on strategies that defend and enforce our trade laws," in light of what he called "surging steel imports." Schorsch, CEO of Arcelor-Mittal Steel's flat products-Americas division, also chairs the AISI.
Steel sector: Imports hurt Q4
Steel imports, estimated to have reached an all-time last year, contributed to a steel glut in the fourth quarter that weighed on prices and undercut earnings at U.S. steel producers. Imports had increased after a shortage of domestic supply, fueled by increased manufacturing demand, drove up prices earlier in the year.
Finished steel imports from China rose 133% last year, with the country providing the single-largest source of steel imports to the United States for six straight months, estimates the AISI.
And even as steel makers have forecast that leaner stockpiles will drive up demand and prices this quarter, they have said such a turnaround hinges on import levels.
"Whether a decline in North American service center inventory levels occurs in earnest depends on import levels, and more specifically, Chinese imports," said U.S. Steel CEO John Surma in an earnings conference call on Tuesday.
"We will have to wait and see if additional pressure on China, but only from the U.S. government but also from the European Union, will facilitate resolution of the Chinese over the production issue," he said.
U.S. Steel forecast better demand for its flagship flat-rolled steel product in the first quarter, echoing rosier outlooks from steel maker Nucor Corp.
Nucor, whose CEO Dan DiMicco has called China the "most serious abuser" in contributing to global overcapacity in the steel industry, said last week that a first quarter inventory rebound would "depend on a continued decrease in imports from the record levels of 2006."
And while imports are likely to be down this quarter, analyst Applebaum cited lingering worry that Chinese production will once again outpace demand, contributing to oversupply and price volatility.
Accusations about cheap Chinese imports hit a fever pitch last fall, as imports and inventories continued to rise at U.S. warehouses, sparking a reversal in steel prices.
But the industry was dealt a set-back in December when a federal trade agency voted to drop special tariffs on carbon steel flat products from four of six countries whose tariffs were under review, arguing that they are no longer needed to protect U.S. steel makers. See full story.
Although Chinese imports weren't a focus, the industry has said such tariffs were still needed to keep out unfair imports -- particularly from China.
Steel and paper companies' shares were little changed after Friday's announcement. Shares of most major U.S. steel producers held onto losses, keeping with a broad sell-off in the metals sector, with the exception of U.S. Steel. The largest U.S.-based steel company was last up nearly 1.7% after hitting a new high of $85.94 during the day

Peanuts, maybe this is why IP has been on crack as of late...

[peanuts]

Steel and Paper

This article may be a clue as to why Steel and Paper have been hot recently...

Steel sector gets trade action it sought on China

By Laura Mandaro, MarketWatch
Last Update: 4:04 PM ET Feb 2, 2007

SAN FRANCISCO (MarketWatch) -- Heads of the nation's biggest steel companies heard their repeated calls for trade action on China answered Friday, with the U.S. saying it would file a complaint at the World Trade Organization over China's subsidies to its materials sector.
U.S. Trade Representative Susan Schwab said the Bush Administration's case would charge China with illegal export subsidies for factory goods including steel, wood and paper. See full story.
The filing is good news for the sector, said independent steel industry analyst Michelle Applebaum.
Flush inventories have been the biggest reason for the recent downturn in U.S. steel prices, she said, "and they got flush because of imports."
China tends to pay attention to trade cases, she said, though she cautioned, "these types of things start and don't always end."
The U.S. steel sector, joined by Luxembourg-based Arcelor Mittal, has complained for months that the Chinese steel industry has been flooding the U.S. market with cheap steel in violation of global trade laws restricting dumping -- or selling products at below cost -- and subsidization of its industries.
The industry's main lobbying group, the American Iron and Steel Institute, on Friday called the filing an "important first step" but also urged more enforcement of current duties on Chinese imports.
"The filing, while significant, only touches the tip of the iceberg of the full range of subsidies being provided to steel and other manufacturing industries in China," said Nancy Gravatt, spokeswoman for the AISI.
On Tuesday, Arcelor-Mittal executive Louis Schorsch had asked Congress and the White House to "focus on strategies that defend and enforce our trade laws," in light of what he called "surging steel imports." Schorsch, CEO of Arcelor-Mittal Steel's flat products-Americas division, also chairs the AISI.
Steel sector: Imports hurt Q4
Steel imports, estimated to have reached an all-time last year, contributed to a steel glut in the fourth quarter that weighed on prices and undercut earnings at U.S. steel producers. Imports had increased after a shortage of domestic supply, fueled by increased manufacturing demand, drove up prices earlier in the year.
Finished steel imports from China rose 133% last year, with the country providing the single-largest source of steel imports to the United States for six straight months, estimates the AISI.
And even as steel makers have forecast that leaner stockpiles will drive up demand and prices this quarter, they have said such a turnaround hinges on import levels.
"Whether a decline in North American service center inventory levels occurs in earnest depends on import levels, and more specifically, Chinese imports," said U.S. Steel CEO John Surma in an earnings conference call on Tuesday.
"We will have to wait and see if additional pressure on China, but only from the U.S. government but also from the European Union, will facilitate resolution of the Chinese over the production issue," he said.
U.S. Steel forecast better demand for its flagship flat-rolled steel product in the first quarter, echoing rosier outlooks from steel maker Nucor Corp.
Nucor, whose CEO Dan DiMicco has called China the "most serious abuser" in contributing to global overcapacity in the steel industry, said last week that a first quarter inventory rebound would "depend on a continued decrease in imports from the record levels of 2006."
And while imports are likely to be down this quarter, analyst Applebaum cited lingering worry that Chinese production will once again outpace demand, contributing to oversupply and price volatility.
Accusations about cheap Chinese imports hit a fever pitch last fall, as imports and inventories continued to rise at U.S. warehouses, sparking a reversal in steel prices.
But the industry was dealt a set-back in December when a federal trade agency voted to drop special tariffs on carbon steel flat products from four of six countries whose tariffs were under review, arguing that they are no longer needed to protect U.S. steel makers. See full story.
Although Chinese imports weren't a focus, the industry has said such tariffs were still needed to keep out unfair imports -- particularly from China.
Steel and paper companies' shares were little changed after Friday's announcement. Shares of most major U.S. steel producers held onto losses, keeping with a broad sell-off in the metals sector, with the exception of U.S. Steel. The largest U.S.-based steel company was last up nearly 1.7% after hitting a new high of $85.94 during the day

Toyota quality is a myth.

Look at X, Mr. Runner. Look at X.

NB, I can’t post the steel guys, as this would violate my group research. My small list of groups have outperformed the S&P every Feb since 2003. Not the most exciting groups but thus far this delta scan has proven successful over the past.

If your in X good job as it has been smoking crack as of late.

[New-born baby]

NB, that is funny. Anyway did you know I have a position in GM...hehe I have not been getting many returns with high volatility for a good while.

Toyota quality is a myth.

Look at X, Mr. Runner. Look at X.

group stocks

BIG GM JWN BSX NTAP EOP IP BAX KG BOL PCL SYK BCR AVY KMB

(5) MED INS & sUPPLIES
(3) PAPER & PAPER PRODUCTS

Week I

Look at that! The General made Runner's scan! GM is on the move.
Toyota has recalled 9.3 million cars since 2004--hey, that's 3 million per year.
http://autos.aol.com/article/safety/...26112809990001

NB, that is funny. Anyway did you know I have a position in GM...hehe I have not been getting many returns with high volatility for a good while.

[New-born baby]

Following stocks have dropped off scan
CIEN CBG PDCO DVN JWN BXP TIN EOP PH BDX

Current list
BIG
GM
MON
DHI
NTAP
BSX
CCL
BAX
KG
IP
TGT
PAI
PCL
BCR
AVY
AN
KMB

Look at that! The General made Runner's scan! GM is on the move.
Toyota has recalled 9.3 million cars since 2004--hey, that's 3 million per year.

http://autos.aol.com/article/safety/v2/_a/striving-for-perfection/20070126112809990001

The Feb list has 326 stocks in all the groups. Here is a list with Jan’s percentage increases...

Here are stocks from the groups posted turned back as “TRUE” as of close today.
I have all 326 stocks out of the entire Feb list that I will run through my scans
AN
AVY
BAX
BCR
BDX
BIG
BXP
CBG
CCL
CIEN
DG
DHI
DVN
GM
JWN
KG
KMB
MHS
NAV
NTAP
PDCO
PH
RAI
TGT
TIN

Groups showing most returns;;
(3) Med Instruments & Supplies
(3) Discount Variety Stores
(3) Paper & Paper Products
Have a good month!!

Following stocks have dropped off scan
CIEN CBG PDCO DVN JWN BXP TIN EOP PH BDX

Current list
BIG
GM
MON
DHI
NTAP
BSX
CCL
BAX
KG
IP
TGT
PAI
PCL
BCR
AVY
AN
KMB

EOM of group list, During Jan the S&P increased 1.41%

Here are stocks from the groups posted turned back as “TRUE” as of close today.
I have all 326 stocks out of the entire Feb list that I will run through my scans
AN
AVY
BAX
BCR
BDX
BIG
BXP
CBG
CCL
CIEN
DG
DHI
DVN
GM
JWN
KG
KMB
MHS
NAV
NTAP
PDCO
PH
RAI
TGT
TIN

Groups showing most returns;;
(3) Med Instruments & Supplies
(3) Discount Variety Stores
(3) Paper & Paper Products
Have a good month!!

Here is Feb’s list of groups that have outperformed the S&P500 since 2003 for the month of Feb:

Group standings for Feb thus far the S&P is up a whooping .27%