Everything is falling into place for a dramatic rise of this stock. Aapl is over. Fb is fading fast. People need real things not electronic gadgets or fake friends. The world needs steel. Steel is real and the need is growing. Everything related to steel is in demand and this is the ground floor. There was a threat a while back because Campbell was attempting to switch to aluminum cans. A chemical reaction between the aluminum and the vegetables, soup etc, killed that plan dead in its tracks. Of course U.S. was already in the process of cornering the tin market. Now piplines and U.S. will be a major playor for supplying those pipelines worldwide. The 84" hot strip was upgraded / beefed up, specifically so they could run the plate for these pipes. Steel for cars. The average car on the road is 10 years old. Enough said there. The business decisions they are making right now will only strengthen this company. If you don't know the Carnagie pension is closed to new employees and has been closed for many years. Liabilities can only go down from this point. There is another factor that will decrease their costs dramaticly but I can't divulge what I know. I'll give you a clue however. Just think of liability/cost not directly related to steel making and what will change to make that liability vanish . So we have major demand setting up. Major liability cost cutting going into effect. And finally a tremendous increase in demand for hot plate/pipe, sheet steel/cars appliances, and tin/tin cans for many types of food. The 84" hsm beast can do it all day in and day out and we will probably roll this Christmas to keep up with demand. Buddy Fox
United States Steel : Is looking to issue New 7.375% to 8.00% Bonds due in the Year 2022 in the Amount of 3 BILLION Dollars yes $3,000,000,000.00 with a credit Quality According to Fitch, “BB+” rated and is more vulnerable to changes in the economy. The company plans to use the proceeds from the notes due 2022 for corporate purpose of share "BUY BACK". There idea is simple outstanding shares : 144,288,000 shares / Inst % Owned 71% / Short % of Float is 28%............They are ready to Issue and already have Buyers lined up for all the bonds. Then they will announce a Buy Back of there shares at $35.00. This will in turn destroy the Short action and let the company take more control as the Institutions will sell back the shares and United States Steel will have more control,United States Steel feels the steel Industry is just around the corner from a Major Recovery.Also note they are watching the Election very closely before they make there decision.
If United States Steel does Not go ahead with there idea,there is a Major Fund that will start Buying up stock of United States Steel not before they Buy Up Call Options then they plan on BUYING UP stock until the Shorts Feel the Squeeze as the Short Squeeze Happens they start to Unload there Options.Now the (funny) thing is the Major Fund knows what United States Steel is up to. Do they ACT before the company issues the Bonds OR do they Act just as the Bonds are issued,any way you slice it the stock is going to get a Major Move Up .
Great post .It seems you really know what your talking about,I agree with you and 2 YEARS from now when U.S.Steel is $130.00 they will be saying why did we not BUY BUY BUY Steel .Simple pipe lines are needed and cars are needed.
The second stock is US Steel (NYSE: X). The stock is a play on China and the rebound in the US auto sector. U.S. auto sector is experiencing continued improvement in sales. X is a strong play to catch this trend as its shipments to the auto industry account for as much as 15% of its total shipments (as of 2011) and it has grown its business in this market by almost 80% in the past three years. I think that the worst is already priced in, as the stock is down almost 22% YTD and more than 50% in the past 2 years. The company has a forward P/E of 12x and is trading at a cheap 0.82x P/BV. EPS next year is expected to rise by 113%. Insider ownership is up 27% over the past six months, and the company pays a dividend of around 1%. John Burbank also bought X.