Stockchase Opinions

John Zechner Gerdau Ameristeel Corp GNA-T COMMENT Feb 01, 2010

Prefers the mini-mills to the large integrated steel producers. You don't get nailed as much by the increase in iron ore costs.
$8.310

Stock price when the opinion was issued

steel
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A stimulus play. You can get a lot of alpha out of this play if there continues to be a lot of stimulus money going into the economy. Try to get it below $8.
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One of the few plays left to play pure steel stocks in North America. Global player. Would be cautious on steel companies today because of the significant ramp up of production in China while prices have been pretty well flat. Demand could be down because of economies. Earnings coming out on Nov 5.
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Recent quarter was okay but is a little concerned about the space. Import battles are starting between countries. Utilization rates for steel mills in the US are well below what is appropriate for making good money. A lot of hype about infrastructure spending but state and local spending are going down.
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(Top Pick Sep 18/09, Down 14.7%) He got stopped out around $8.50.
COMMENT
Structural steel and construction industry in North America has been in a downturn over the last couple of years. There are some early signs that we may have hit the bottom. If you're horizon is 12-24 months, you can buy, otherwise he would wait.
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