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Jim Van Meerten
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Jim Van Meerten is an advisor to Marketocracy Capital Management and writes on financial subjects here and on Barchart Portfolio Blogs and Seeking Alpha. He earned a BS in Accounting and Business Administration from Berry College; a Juris Doctorate from the Woodrow Wilson School of Law; and... More
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  • Steel is hot - 3 stocks to watch 0 comments
    Feb 7, 2011 11:39 AM | about stocks: ATI, HAYN, STLD

     If the economy is to recover steel is not an optional industry -- it's an essential industry right in the core of the auto, infrastructure and manufacturing industries.  It's hard to think of an industry that does not use steel or metal products somewhere.  Luckily, this industry has shown signs of recovery.  Just look at the chart of the steel industry index price change vs, the 20, 50 and 100 day moving averages and Trend Spotter (tm) in the last 2 1/2 months:

    Charts provided with permission from Barchart.com
     
    The steel industry has enjoyed very good price appreciation recently so I used Barchart to begin my search for stocks showing the most consistent price momentum, prospects for earnings growth and positive investor sentiment.  Take a look at these 3 and maybe add them to your watch lists.
     
    Allegheny Technologies (NYSE:ATI-- one of the largest and most diversified producers of specialty materials in the world. The company's talented people use innovative technologies to offer growing global markets a wide range of specialty materials including stainless steel, nickel-based and cobalt-based alloys and superalloys, titanium and titanium alloys, specialty steel alloys, zirconium and related alloys, and tungsten-based specialty materials. The goal is to be the low cost, high quality supplier to global markets.
     
     
    • 96% Barchart.com technical buy signal
    • Trend Spotter (tm) buy signal
    • 6 new highs and up 21.95% in the last month
    • Relative Strength Index 71.21% and rising
    • Trades around 67.64 with a 50 day moving average of 57.63
    • Wall Street brokerages have published 7 buy and 2 hold recommendation
    • Sales are projected to increase 17.50% this year and 8.40% next year
    • Earnings are estimated to increase by 269.50% this year, 40.60% next year and continue at 20.00% annually for the next 5 years
    • Investor sentiment is very high with the CAPS members on Motley Foll voting 1064 to 61 that the stock will beat the market with the All Stars in agreement 389 to 10
    Haynes International (NASDAQ:HAYN) -- a technology-oriented company devoted primarily to the development and manufacture of high-performance nickel- and cobalt-based alloys for service in severe corrosion and high-temperature applications. Superior customer service and technical support are provided worldwide by well-trained professionals within the company. Haynes' service centers and affiliates have available in-stock sheet, plate, bar, wire, tubing, forging stock, fittings, and flanges.
     
     
    • 96% Barchart.com technical buy signal
    • Trend Spotter (tm) buy signal
    • 12 new highs and up 21.75% in the last month
    • Relative Strength Index 67.60%
    • Trades around 50.12 with a 50 day moving average of 43.12
    • Wall Street brokerages have 4 buy and 2 hold recommendations published
    • Sales are projected to increase by 15.80% this year and 8.40% next year
    • Earnings are estimated to increase by 211.00% this year,21.10% next year and 18.00 annually for the next 5 years
    • Investor sentiment is high with the CAPS members on Motley Fool voting 211 to 13 that the stock will beat the market and the All Stars agere 84 to 1
    Steel Dynamics (NASDAQ:STLD-- owns and operates a flat-rolled steel mini-mill. Steel Dynamics operates in the production and sale of hot-rolled and cold-rolled steel coils. The company's customers consist of intermediate steel processors, steel service centers and end users including manufacturers of cold-rolled strip, oil and gas transmission pipe, and mechanical and structural tubing.
     
    • 88% Barchart.com technical buy signal
    • Trend Spotter (tm) buy signal
    • 4 new highs and up 4.89% in the last week
    • Relative Strength Index 60.85% and rising
    • Trades around 19.06 with a 50 day moving average of 17.86
    • Wall Street brokerages have 9 buy and 2 hold recommendations published
    • Sales are projected to increase by 25.30% this year and 6.30% next year
    • Earnings are estimated to increase by 143.30% this year, 33.10% next year and 31.90% annually for the next 5 years
    • Investor sentiment is positive with the CAPS members on Motley Fool voting 945 to 35 that the stock will beat the market and the All Stars agree by a vote of 297 to 6.
    There you go - 3 steel stocks that are expected to increase earing per share by over 100% this year.  Add these to your watch lists.
     
    Jim Van Meerten is a professional investor with over 40 year experience in investing in stocks, mutual funds and ETFs.  He shares his knowledge on Barchart in his daily blogs -- Barchart Portfolio Blogs.
     


    Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.
    Stocks: ATI, HAYN, STLD
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