ArcelorMittal +8% on J.P. Morgan upgrade, becomes preferred steel pick
Oct 9 2015, 08:08 ET | About: ArcelorMittal (MT) | By: Carl Surran, SA News Editor [Contact this editor with comments or a news tip]
ArcelorMittal (NYSE:MT) +8.3% premarket after J.P. Morgan upgrades shares to Overweight from Neutral on valuation as well as expected higher steel prices in Q4 as trade cases take effect.
JPM says MT is now its preferred steel pick, as the company stands to benefit more from U.S. trade protections.
Despite cutting its FY 2016 earnings estimates for MT, the firm still sees cause for optimism from current levels as demand seasonally improves during October and November.
Avoid MT if you want to keep your sanity, it?s a disaster. I am playing Ultimate Stock Alerts (search them in Google) instead
So Mr Mittal does not Read this Message board, He is too High Level, to reach down to read this. Maybe his underlings might read this.
Sentiment: Strong Sell
The government has acquired MT's stakes in the operations and now will have full control of the assets..
@7 October 2015 - ArcelorMittal and IMETAL, an Algerian state-owned company, have reached an outline agreement for the restructuring of the shareholding of the companies ArcelorMittal Algeria, ArcelorMittal Pipes and Tubes Algeria and ArcelorMittal Tébessa. The restructuring follows the strategy of the Algerian Government to ensure the promotion and development of the national steel industry and to promote self-sufficiency in steel. The restructuring is aligned with ArcelorMittal`s strategy of asset portfolio optimisation. The restructuring plan will see ArcelorMittal transfer its minority shareholding in both ArcelorMittal Algeria and ArcelorMittal Tebessa as well as its majority participation in ArcelorMittal Pipes & Tubes Algeria, with the state of Algeria controlling the full shareholding of these entities. Furthermore, ArcelorMittal will continue its technical support for the successful implementation of El Hadjar Complex development plan.
Glad I came across these guys. They literally made me $600 in 2 hours. Ultimate Stock Alerts (you can find them in Google)
Right after the company reported the Q2 financial results on Aug. 3, the PPS rose for a week. After that began the most recent steep fall that has continued to this day. I have no explanation to this falling knife.
On Sept. 22 the PPS closed at US$6.065 and on Oct. 1 it closed at US$5.04. So in spite of the unchanged guidance, the PPS is down 16.9 percent in a little over a week. This short term down movement is hard to explain, too. I even suspected that in the conference the company representative said something negative which is not written in the presentation. However, I have ignored this possibility.
So why is the stock down almost 40% since August 10 if there appears no material deterioration in their earnings power ?? Mittal will have to come out and make a comment if not the hemorrhage will continue and imvestor will continue to dump this falling kniofe!
The conference was held on 23 - 24 September 2015. The company has published the presentation on its website. And indeed, the presentation repeats the guidance given on August 3, 2015. Also in other respects, the presentation increased my confidence in the company.
On Aug. 3, 2015, the company gave the following guidance:
• The Company’s guidance remains unchanged and continues to expect: 2015 EBITDA within the range of $6.0 - $7.0 billion; 2015 capital expenditures of approximately $3.0 billion; and 2015 net interest expense of approximately $1.4 billion
• The Company continues to expect positive free cash flow in 2015 and to achieve progress toward the medium term net debt target of $15 billion
Can you say, did the CEO confirm the above guidance on Sept. 28, 2015? If so, the PPS should recover in the coming days.