Opinions

David Goodman Dofasco DFS-T DON'T BUY Jan 22, 2001

If you own there is limited downside, so hold. If you don't own there are better plays

David Goodman

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Stock price when the opinion was issued

steel

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WATCH

Broke out from its 15 year trading range at $34, but is now below its 200 day. Had a negative technical break which was very surprising because steel stocks historically have done well. Probably some kind of negative news that is waiting in the wings to happen When the news is announced, this 1/4 or next, the stock should have a recovery rally to $40 and at that time would sell.

DON'T BUY

One of the highest quality steel company in North America. Dividend is safe. Steel prices have probably peaked here for awhile and the momentum's gone off. Wait until they stop correcting. If you own, Hold.

BUY ON WEAKNESS

Had a tremedous run for a couple of years as steel prices went up. People thinks that steel prices are going to come down, faced with very high coal costs, high iron ore imput costs and increasing competition. However, this is the best North American steel company, good balance sheet, pays a nice high dividend. Big exposure to the auto sector. Stock could drop another 15%.

DON'T BUY

This one really represents the market's opinion on where steel prices are going. Chinese have been big buyers of steel, but are now producing and will be exporting it. They also produce a lot of the steel that is used in the auto industry.

WEAK BUY

Admires the company. They have done a good job of managing. Likes the argument that their is going to be great demand over the next several years from developing countries. Not sure if its a compelling Buy at these levels, but a very good company.

DON'T BUY

Was looking at the steel industry, but missed its pull back, so didn't catch its bounce. After a rise of 25%, he's not going to chase it.

WEAK BUY

Steel companies have really cleaned up their balance sheets with the high price of steel. This company has a nice healthy yield. The issue with them is that their steel gets used in autos, so when autos pull back, this one will too. Trading at a little under 10 X earnings so a slowdown is already priced in. Not sure of how much upside there is.

DON'T BUY

Fully priced. Dividend makes it look attractive but the ability to grow profits, given the softness in steel, makes it pretty expensive at this price.

SELL

Being acquired. He would consider selling it as the bidding war it is getting kind of crazy.

SELL

Being acquired and the price is so high, that if you own, you have to take the cash. If you want to be in steel, there will probably be another steel stock that would be a better buy.

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David Goodman Dofasco DFS-T DON'T BUY Jan 22, 2001

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