Stephen Simpson, CFA
Long only, growth at reasonable price, value, research analyst

POSCO Looks Serious About Building Value

It looks like a new day for POSCO (NYSE:PKX), Korea's giant steel company, as new management has made it clear that the empire-building of the past is going away in favor of a greater focus on margins, returns on capital, and businesses with long-term competitive advantages. The shares look like a decent enough value on near-term EBITDA, but the long-term potential is more attractive if the company can get back to mid-single digit ROEs in a year or two and double-digit ROEs down the road.

Big, But Not Always The Best

POSCO is the world's fifth-largest steel producer on a production basis, trailing world leader ArcelorMittal (NYSE:MT) by a very large margin, as well as #'s...

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