oops forgot this is not US Steel although Mital has US presence and world wide presence and diversification
that's why it will a big rebounder when bears get tired of shorting for 7 cents profit vs huge uptrend profits from here
Steel giant, ArcelorMittal MT declared that it has invested $11.1 million into its leading tubular facility in Monterrey, Mexico. The investment, made to increase product capabilities for the North American automotive market, is in sync with the company’s strategy to expand its foothold in the automotive sector that continues to show significant growth, both in Mexico and the southeastern U.S.
I am short . These boards are to inform the uninformed. Like you for example. MT copied Worldcoms model of acquiring mills and mines and leveraged the hell out of their balance sheet. Buying mills and mines at multipulies of sales and not profits. During the last crisis they fended off the inevitable debit run by diluting shareholders via converting a lot of debt into equity. These are facts...most of the mills and mines they acquired are either closed or have been idle for years. No solution to fix a broken company with 21Billion in debit and a 8.5B dollar market cap...when the stock breaks 5 lets see what happens...no egos here just sharing my beliefs and thoughts lol
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Why do you keep posting the same thing every week ? Do you really think that posting on this POS message board is going to move the stock price ? I think you are short MT and just massaging your ego with posts that constitute wishful thinking. MT is not in trouble and there is no issue with debt covenants. The steel market goes up and down with world economies and we're in the down part of the cycle. In two years the cycle will be moving in the other direction and MT will be a star performer due to the cost cutting and systemic efficiencies they have implemented during this down cycle. And you should know that rating agencies are a trailing indicator of performance, not a leading indicator.
I just bought some last week under $6. I'm guessing I'll have to again...under $5 which I'm pretty sure it's heading. If it goes towards the $4's....buy again.
Yes, MT is only about 6% of the world's steel production but it is the largest in the world and it mines it's own ore so it will survive before those steel companies that have to buy their ore from the market.
MT can just slow down, close (temporarily) some plants/mills/mines and just wait this out. Their balance sheet is solid. Positive free cash flow. They could eliminate their dividend and that would also be good. Nobody owns MT for income anymore. They are selling at a historical low to book value and sales.
I'm not happy, but honestly, not surprised. MT will still be around in 5 years...10 years.
Buy now...or pretty soon and hold the shares...you'll make money if you're patient.
Just look at the miners, they're all death in the water. And now Glencore who is ballancing on the edge of chapter 11... that chinese coal company firing 100.000 people...
What does everybody think? Could Arcelor shut down for a while and recover later?
no doubt you are correct, no harm jumping the gun at this level, every one jumped he gun from 14 to 6 was way too early - at this level the reward to risk is so high - no one will fault anyone going in now
you have to be in the game to win it
It's even cheaper than the last time I bought MT. Now it's 1/4 of book value and slightly more than 1/10th of sales. 4 times free cash flow.
The last time I bought MT all these metrics were higher. Bought at around $10 and sold around $14. Haven't been following her much but it showed up again on a screen I like to run on stocks that are selling at a huge discount to book and sales. I know many of their sales metrics are going lower so the 4 x FCF is a little misleading...however by my criteria selling below 10x FCF is a bargain.
MT is worth taking a position in today even as you need to be prepared to add if it keeps heading lower....which it appears to want to do. Nobody can pick the real bottom, but I'm sure it's closer than we think.
I am getting very worried about this drop. I just went through bk with ANR and this looks similar. Nothing said by company.