Mar. 27, 2014, 12:05 AM
Mar. 26, 2014, 5:30 PM
Mar. 18, 2014, 3:21 PM
- Steel stocks are higher despite Nucor's (NUE +0.8%) disappointing guidance, which apparently was more than offset by price increases at ArcelorMittal (MT +1.3%) as mills try to stem the downtrend in prices during the past two months.
- Nomura lowers its Q1 earnings estimates for steel stocks ahead of mid-quarter updates from NUE, mini-mill peer Steel Dynamics (STLD +1.5%) and AK Steel (AKS +6%), which are expected within the coming week, but the firm continues to positively view stock performance in the sector going forward.
- Also: X +5.3%, TX +3.1%, SCHN +2.4%, CMC +2.1%, GGB +1.8%, RS +1.8%.
Feb. 24, 2014, 7:56 AM
- US Steel (X), Commercial Metals (CMC) and Steel Dynamics (STLD) are downgraded to Hold from Buy at KeyBanc.
- US Steel -1.2% premarket as the firm cites stronger than expected flat rolled pricing headwinds and unexpected negative developments in the tubular segment, which has profit and valuation multiple consequences, as reasons for the downgrade; all else equal, every $5/ton change in flat rolled pricing equates to $70M-$75M in EBITDA and ~$0.35/share in earnings.
- CMC and STLD are downgraded based on valuation and more cautious near-term expectations, as flat rolled spreads decline and metals recycling profitability struggles in H1.
Jan. 17, 2014, 5:58 PM
- Steel stocks are starting to cool off after a hot six months, and Citigroup thinks they could cool off even more, with even a pickup in demand after a lackluster 2013 not enough if prices don’t stay high.
- Steel imports that grew 4% in H2 2013 should accelerate and pull down U.S. markets, and weather-disrupted scrap supply which supported prices should normalize/correct in coming months, the firm says, adding that many steel names look less compelling on valuation after big gains.
- Cit rates Steel Dynamics (STLD) a Buy for its valuation, margins and links to the construction industry, while Nucor (NUE) and Commercial Metals (CMC) get Neutral ratings; US Steel (X) is Neutral too, but "would risk multiple-compression if [hot rolled cold steel] corrects."
- The firm's least favorite: AK Steel (AKS), “based on our outlook for negative free cash flow due to pension/OPEB funding obligations, leveraged balance sheet, and challenging stainless markets."
Jan. 7, 2014, 8:07 AM
Jan. 7, 2014, 7:03 AM
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Jan. 6, 2014, 5:30 PM
Oct. 23, 2013, 7:16 AM
Oct. 23, 2013, 12:05 AM
Oct. 22, 2013, 5:30 PM
Sep. 18, 2013, 3:59 PM
- BMO initiates coverage of steel companies (SLX) Nucor (NUE +2.7%), Commercial Metals (CMC +2.3%), U.S. Steel (X +2.6%) and Steel Dynamics (STLD +0.9%).
- NUE, started at Outperform with a $54 price target, is arguably the best of breed, with the highest margins in the group and best balance sheet; it also has best execution and benefits from growing low-cost DRI production.
- CMC also is initiated at Outperform; it trades at the lowest valuation in the steel sector based on adjusted EV/EBITDA, dividend yield and free cash flow yield, and is leveraged to non-residential construction expected to improve over the next one or two years.
- X is started at Market Perform; its balance sheet is by far the most stretched of the group at 5x net debt to EBITDA for FY2013, and there is potential for dilution from an out-of-the-money convertible bond due in 2014.
- Earlier: STLD is started at Market Perform.
Jun. 27, 2013, 11:35 AMCommercial Metals (CMC +3.6%) climbs higher even after FQ3 missed expectations. CMC says a modest improvement in rebar shipments was more than offset by weaker shipment levels of merchant and light structural products, resulting in lower profitability at its Americas Mills business. Operationally, CMC anticipates FQ4 results similar to FQ3; consensus estimates are $0.25 EPS and $1.93B in revenues. | Jun. 27, 2013, 11:35 AM | Comment!
Jun. 27, 2013, 8:49 AM
Jun. 27, 2013, 7:12 AM
CMC vs. ETF Alternatives
Commercial Metals Co recycles, manufactures, fabricates and distributes steel and metal products and related materials and services through a network of locations throughout the United States and internationally.
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