Sell The Steel Stocks
Despite the takeover talks of US Steel (NYSE: X) , the fundamentals are terrible for all steel stocks. China is no longer importing steel. The input prices are increasing with higher energy costs and ore prices. Check out the following reports.
China Steel Surplus
Steel Prices Fall 23%
Note: I have no position (long or short) in any of the steel related stocks.
China Steel Surplus
Steel Prices Fall 23%
Note: I have no position (long or short) in any of the steel related stocks.
posted by Big Ben at Sunday, December 04, 2005
1 Comments:
Jerry,
I agree ATVI looks interesting at $13 down from $17. Short term, it has lost all of its "XBOX" momentum.
2006 Earnings should be $0.68. So 20 times $0.68 = $13.60. But if you give it a 15 multiple then you are looking at $10.20.
I am staying away from ATVI. But I have been wrong a lot of the time. If you follow the CANSLIM investing method you would avoid this stock because of its poor relative strength. Historically stocks that are up keep going up and stocks that are down keep going down. I can't call a short term bottom in ATVI. I wouldn't buy or short it.
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