Seeking Alpha

U.S. Steel "among the best shorts in the market," Axiom analyst says

  • U.S. Steel (X -3.2%) has shed 17% YTD, but Axiom Capital’s Gordon Johnson thinks there's more downside to go, calling U.S. Steel “among the best shorts in the market today."
  • Given that U.S. hot-rolled coil steel spot prices are sitting at a premium of greater than $200/metric ton to Chinese spot prices, and Chinese exports of steel are at multi-year highs, Axiom notes that whenever the spread between U.S. HRC spot and Chinese HRC spot has opened up to similar levels, U.S. HRC spot prices have collapsed down to the Chinese level within a few months.
From other sites
Comments (1)
  • pytiz
    , contributor
    Comments (281) | Send Message
     
    Not surprising. Stock should be trading in the $16-$17 range...
    20 May 2014, 03:31 PM Reply Like
DJIA (DIA) S&P 500 (SPY)
ETF Hub
ETF Screener: Search and filter by asset class, strategy, theme, performance, yield, and much more
ETF Performance: View ETF performance across key asset classes and investing themes
ETF Investing Guide: Learn how to build and manage a well-diversified, low cost ETF portfolio
ETF Selector: An explanation of how to select and use ETFs