Nucor Corp. (NUE)

Still has had some fits and starts and looked like a darling, but if you look at this right now, it made a bottom at the end of January, and then came back up to what would’ve been a breakdown of around $47. Until the stock gets above $48, it wouldn’t be interesting. If it gets above $40, it could be a pretty good buy. Expect it to have a lot of gnashing and to-ing and fro-ing between $48 and $56. Indicators are right in the middle of the band, so are not really telling us about being overbought.

His favourite steel stock in the US. They have the pricing power and they don’t have leveraged balance sheet like others. You have to remember that this is cyclical. The time to be buying is when things are at their worst. These companies are going to make all their money in the good times and lose it all in the bad times. At this price. It is okay but is not a situation he would want to step into until he sees more performance of the US market that steel demand is going to continue. 2.7% yield.

Broke below the 50 day moving average a couple of months ago and then below the 200 day last week. Not levered to a Chinese recovery but is really focused on what is happening in the US markets. Very well run company with a very solid management team. There is very little demand for their products. Non-residential construction is a big part of their business and they are not seeing an uptick here. 3.5% dividend yield.

Given that steel demand is falling off because iron ore prices are falling, he would hold off buying this. Of the US steel companies, this is probably the best however you are going to have to deal with the cyclicality of it and that is where the danger comes into play.

Margins were under some pressure and obviously steel pricing has come down but it is still a low-cost manufacturer. They use more scrap than the integrated steelmakers. He feels we are starting to see growth in global industrial production again which benefits them.