Bulls of Steel?

67 views

Keep an eye on the steels here. Along with the solars, I have them at the top of my watchlist. Note the SLX below, ETF for the steels, breaking out from an orderly falling wedge. Obviously, the 50 day moving average is up. However, I would assign more significance to the breakout from the wedge than to the 50 day above.

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9 Responses to “Bulls of Steel?”

  1. I’ve been watching X and STLD. I know GS likes both… thoughts on either?

    • STLD i like better

      • A little more digging – this is from Goldman on STLD from early March:

        STLD stock has remained range bound since mid-January and
        underperformed its main peer, NUE (Neutral, $47.81) by more than 6% ytd.
        We believe that in an environment where metal margins have moved to
        historical highs, STLD share price should break out of this trading range as
        investors get more confident that the current steel cycle has more legs in
        near to medium-terms. We believe that even if steel prices do not rise any
        further, the profitability that is implied from current metals spreads
        indicates that upside to the estimates for the next couple of quarters
        We believe that Steel Dynamics offers an excellent investment
        opportunity. Its ability to earn better margins than any of its peers, its
        relatively better position on inputs, and the most attractive valuations
        among peers are all supportive of our bullish view on STLD.

  2. Fly, what do you think about RAME ? i’m bouhgt 20,000 @ 1.70 and 10,000 @ 2.03
    what possible target for them? my TP is 3,20

Comments are closed.

Bulls of Steel?

67 views

Keep an eye on the steels here. Along with the solars, I have them at the top of my watchlist. Note the SLX below, ETF for the steels, breaking out from an orderly falling wedge. Obviously, the 50 day moving average is up. However, I would assign more significance to the breakout from the wedge than to the 50 day above.

_________

12631.png”>12631.png” alt=”” width=”590″ height=”390″ />

9 Responses to “Bulls of Steel?”

  1. I’ve been watching X and STLD. I know GS likes both… thoughts on either?

    • STLD i like better

      • A little more digging – this is from Goldman on STLD from early March:

        STLD stock has remained range bound since mid-January and
        underperformed its main peer, NUE (Neutral, $47.81) by more than 6% ytd.
        We believe that in an environment where metal margins have moved to
        historical highs, STLD share price should break out of this trading range as
        investors get more confident that the current steel cycle has more legs in
        near to medium-terms. We believe that even if steel prices do not rise any
        further, the profitability that is implied from current metals spreads
        indicates that upside to the estimates for the next couple of quarters
        We believe that Steel Dynamics offers an excellent investment
        opportunity. Its ability to earn better margins than any of its peers, its
        relatively better position on inputs, and the most attractive valuations
        among peers are all supportive of our bullish view on STLD.

  2. Fly, what do you think about RAME ? i’m bouhgt 20,000 @ 1.70 and 10,000 @ 2.03
    what possible target for them? my TP is 3,20

Comments are closed.