An irreverent look at Wall Street
Citi not worried either-also expanding hedge.and last month cramer was saying sell some of your stocks and buy 'safe' stocks with div.--is it now ok to buy 'unsafe' stocks? Why not just hold, or buy on the dips would have been better advice.X up pretty but what about V? hold on? will it ever hit past 90 again?
V looks good here. Goldman said this about the steel names:Steel prices could soften furtherWe expect steel prices to modestly decline in the near-term primarily driven by lower scrap prices. However,we believe that this soft patch will not last beyond the seasonal summer slowdown as demand shouldcontinue to improve. Scrap flow has already slowed down markedly which should limit the downside, millshave started to exhibit rationalization, and inventory levels remain low. Although order flow at the mills hasdeclined as buyers are content since they bought enough steel while prices were on a rise, low levels ofinventories indicate that they will not be able to remain on the sideline for too long.Mills have once again started to show disciplineRecent announcements of productions cuts in the US and abroad reaffirm our view that steel producers willremain disciplined to match supply with demand. Overproduction is the least of our worries and we have seenmills exhibit discipline time after time since 2004. This discipline is not just limited to the US or Europe; evensteel mills in China have curtailed output when supply has exceeded demand.China may tighten its policy to curtail exportsThere have been press reports that Chinese government may reduce export rebates or even impose exporttax to reduce the flow of steel out of China. We believe that such a measure will be very positive for theglobal steel sector. We have always maintained that China does not have a competitive cost structure and isnot in a position to become a large sustainable exporter.What raw material giveth raw material taketh awayA sharp drop in iron ore and scrap prices is the biggest threat to steel prices, in our view. Steel priceincreases since early this year have been primarily driven by raw materials, and as spot iron ore prices inChina and scrap prices in the US are sliding, steel prices are on a reversal.Low cost producers should outperform in the near-termAs scrap prices back off and production volume are reduced, low fixed cost mini-mills like STLD and NUE(both rated Buy) should be able to weather the storm better than their integrated counterparts. Medium tolonger term, we like X (Buy) due to itsFCX is the best gauge for iron ore and its up 4
vertical integration into iron ore.missed that from the Goldman note at end
what do u think of the market here
Come in a little-we had a nice rally and now it will probably be digested up here and lower--and the pullback will allow numbers like BUCY to trade higherSo lets see it come in and that will set up trading opportunities
Senator Kyl: Obama Told Me He's Not Securing Border on Purpose http://www.thefoxnation.com/sen-jon-kyl/2010/06/21/senator-obama-told-me-hes-not-securing-border-purpose
you were right Palamoni--V did look "good here" at $75.42V ruuuumbles -now 82.38
just in case anyone forgot the rumble note!!!!
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