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Alert: Steel Plays To Watch

Jan. 31, 2011 12:22 PM ETCPSL
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 U.S. steel companies have been on fire over the last week, soaring on optimism and other key factors. Today, United States Steel Corporation (NYSE:X) is jumping higher again, trading at $57.21, +1.41 (+2.53%). As long as large cap steel companies stay strong, eyes must be leveled on small cap steel plays. This is a standard sympathy play which is used my many smart traders and investors. The key here is to put these small caps on watch and not pull the trigger until the large cap plays break recent highs.

The three small cap plays are all Chinese. With growth in China continuing, their valuations are very interesting at current levels. The first is China Precision Steel, Inc. (NASDAQ:CPSL) which is trading at $1.67. The second is General Steel Holdings, Inc. (NYSE:GSI) trading at $2.55 an the last is Sutor Technology Group Ltd. (NASDAQ:SUTR), trading at $2.05. All are trading at attractive valuations with intense possible growth ahead.  The key again is to watch for the right signals. At this time these are just on watch.

Gareth Soloway

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