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IPSCO Inc (IPS.TO)

PAST TOP PICK
(A Top Pick Oct 21/04. Up 88%.) Has had a tremendous run, but may be overpriced now.
BUY ON WEAKNESS
The normalized long term earnings is about $7. Look at paying at about 8/9 X's, preferably in the mid $50's. With steel prices coming down next year, would wait for further pull backs.
PAST TOP PICK
(A Top PIck Feb 2/05. Up 8%.) Sold 1/3 of their position at $72 and bought more when it dropped back to the $50 range. Builds plate for shipe, Caterpillar Tractors, rail cars, etc. Plate market is very strong.
BUY
Steel stocks have been exceptionally strong in the last couple of years. There is a real mixed message in the sector with regards to China. Will they need steel or will they do their own production and exporting? Prefers Ipsco because they make steel for the oil/gas industry.
WEAK BUY
A much better company than a lot of the others. One of the problems with the steel industry is that steel has moved up a lot over the last little while and the whole push into China. China was a net importer of steel and is now a net exporter which will push down the prices.
HOLD
Has been the best performer in the Canadian steel market. Looks very strong.
DON'T BUY
Long term he thinks it's good, but he's staying away from it for now.
SELL
Would be a seller of all steel stocks at this time. A great company and they have done well. If you are going to be in steels, you are better off in pipes which is a longer term growth story. China is turning into a net exporter rather than an importer.
SELL
Benefits from a tight profits, easy money already made, perfrorming at peak.
DON'T BUY
Feels there's more upside in steel. Prefers to be on the side of the companies that feed the steel companies. (See the Top PIck for today.)
BUY
Steel pricing is still holding on fairly firmly and demand is very strong. Recognize that the risk is getting higher and have an exit strategy, such as a stop/loss.
DON'T BUY
Feels it's overvalued in the near term. Would like to see the earnings catch up with the stock price.
DON'T BUY
For this to go any higher, we need a pipeline announcement and that could drive the company further.
BUY
Has a very strong position in oil country and when the McKenzie Valey pipe line starts being built, they will be a big beneficiary.
TOP PICK
People treat all steel companies the same and are concerned about consumer product steel, but this company makes plate which is used for rail cars, ships, construction tractors, etc. and demand is exceptionally strong. Feels they'll earn $8US a share in 2005. Makes large diameter piping so if Alaskan pipeline goes through, they'll do very well.
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