I moved into NUE to diversify out of the tech sector. Unfortunately, NUE will begin to shine and then drop like a rock. I tend to purchase each time it drops below $50. What is going on with this stock and why the price action?
Consumer sentiment is down. Industrial production outlook is weak. Energy prices are still high. Margins are punk in many regions and for many products. NUE soared from 40-70 with other industrials when it looked like we were coming out of the recession. Now on rumors of a double dip -- and a few more weak quarters -- industrials are out of favor again.
I was a tech analyist for a few years and have not given up on that sector. Be selective, but NUE is a good solid performer. A member of our stock club has owned it for a LONG time and done very well. Keep an eye on earnings and I think we will be OK. I own NUE as well but am very heavy in the techs. We will always need the Intels and what it takes to build hardware. Electronics will never go away. Frank