bushwachergary

US Steel: Solid as They Come

Lovely nostalgic story with the author bemoaning the lack of WS coverage, but I recall a WSJ article almost a year highlighting "The Balkanization" of the steel industry; consolidation through M&A and it's likely effects.

Fewer suppliers bring to mind an oligopoly and, through discipline control the supply side to match (or be less than) the demand side, pressuring price upward... think OPEC.

Steel is a good investment for those reasons, and not only do I not buy waning global demand (China & India are en fuego); but even if the growth were to temper, the global steel oligopoly will manage prices through their disciplined supply side control

You cannot look at NA in isolation, thinking recessionary impact, etc because; the global situation (NA steel exports, weak US$ causing no foreign steel imports) pressures US pricing upward even in the face of a continental recession.

Sanmina-SCI: A Bargain at Current Prices

Overpromising, underdelivering may be true, but isn't that now baked in, at a paltry share price of $1.10?

But, how can you refute cash $1.63 and stock price $1.10 in a "cash is king" world ?