Ugly results ...this has a long way to goo down .I expect this to trade close to $100
my sentiments exactly and maybe more than we think!
china demand is not down. they grew 10%posco is not down on sales, instead they grew 25%next year the volume of steel sold will increase 10%and the high input costs for ore will decrease 20%If you do the math.. you will see that this is not dooms dayIn six months, this stock will be 20% higher, and if the long-awaited 12mt factory in India gets approved (thats 33% more volume), (and the Indonesian Krakatau plant) there will be immediate benefits from that
for the near term THIS IS DOOMSDAY!
http://stock.daum.net/item/main.daum?code=005490&nil_profile=stockprice&nil_menu=itemsearch1http://seekingalpha.com/article/229615-posco-what-about-now?source=yahoohttp://biz.yahoo.com/zacks/101013/41475.html?.v=1What you don't read about is that they have made about 5 major deals, 2 or 3 in India, one in Indonesia, South America, Africathey sold 33 million tons, next year forecast 36 mt.moreover, they have expanded into other businesses. electronics, mining, there is not going to be anything but upthe current problem is due to the 87% increase in ore costs, but the company is buying the ore companies now.. and will get cheaper ore, next year forecast to be 10-13% lower.. perhaps more..a report for 3 months later, that indicates things are going to be fine after that, that sales are up, expansion is going on, isn't a problemby the way, the company has huge call options volumes at the moment.if you sell, buy the options to cover your butt.
and now you are lost!!market is moving upWhen do you cover ??at 119 stop loss?
I will cover @$99 .I expect a drop of 15-18%