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Companhia Siderúrgica Nacional Message Board

  • billsimons33 billsimons33 Jan 14, 2011 12:05 PM Flag

    Lots of Negative Press recently

    ...but stock price has performed well until yesterday 1/13. I am long the stock but some of these press releases below are making me think I should take a little off the table. Any thoughts on the next 1-3months and then beyond. Thanks in advance.

    This one even says, "Sell SID now":

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    • I have a TD Ameritrade account. They listed the news 1/13/11 under their media SID news articles. It was a Dow Jones report. If you Googled "CBS Providencia Dow Jones 1/13/11" you will find the article.

    • Here is some good recent news distributed through an SEC filing. The DBS Previdencia pension fund (for CSN employees) was forced to sell much of their company stock position because Brazilian law no longer allows them to have more than 10% of their money in any one stock. They sold 4% of the total capital stock of CSN (SID) to become compliant with the new law. That was a $1.53 Billion sale of stock transaction last week.
      Who did they sell it to? Not on the open market. It was bought by the CEO's holding company in one lump sum stock transfer. The Steinbruch family and other insiders already control over 50% of CSN stock;now the CEO just bought another $1.53 Billion worth at the current price. Now if any other ownership group of a steel company (or any other company for that matter) bought that much stock in their company, it would be big news on the US networks; but not this transaction. My feeling is that this company gets picked on by media groups, e.g. the Motley Fool, but never gets the credit they deserve or recognition for being a solid steel producing company that competes and produces results for their stockholders more than any other steel company in the world. The Steinbruch family doesn't fly around the world touting their own expertise in steel manufacturing or spend time talking to the business media about how well they are running a huge vertically-integrated steel and cement manufacturing business. If they were to make an effort at touting their expertise in this country, their ADR/US stock would take off in response.
      I can remember how CHK (Chesapeake) stock skyrocketed every month when it was being announced that their CEO Aubrey McLendon was adding/buying $1 million worth of stock to add to his holdings on a regular basis. Well that went on for several months, then the natural gas market tanked and we all learned that Aubrey was buying the stock on margin, so he tanked too and we all learned he was just a big gambler and that ended in disaster for him as well as for the CHK stockholders that trusted that when he bought stock he was actually spending real money with intent to hold the stock long term; I thought that he thought Chesapeake had much more value than the stock itself represented.It was touted as insider buying, when in reality it was insider gambling.
      In the case of CSN, the Steinbruch family is paying the full dollar amount for this stock, not buying on margin, and it says to me they think this stock is undervalued and they want to add $1.53 billion (a 4% increase) to their current large position in the company. How much more bullish can you get than this insider BUY recommendation? Yet it gets no recognition in the US media coverage for this company. Did Motley Fool ever mention this positive about the company? This company needs to spend more time and money touting its own manufacturing expertise and telling its story and future business plan to US investors. Only then will it be able to run higher in our US stock marketplace.

      • 2 Replies to grmabar
      • Nice post. Where is info at? This company has always done very well and always bounces back for some good reason.

      • Thank you for your well thought out reply. This message board is much better than most I have been on. I plan to be long SID through the upcoming World Cup in 2014 and Olympics in 2016. Two major world events that SID should be able to take advantage of and add to their bottom line which will pay us back as investors in the form of a nice dividend. I can only see this company growing in the coming years. I can take a few "lumpy" quarters in the mean time to buy more. Thanks again to all who replied to my original post...

    • Just a few people trying to buy the stock on the cheap. Bloomberg reported yesterday that the CEO was trying to buy the pension fund's stake in the company to increase his ownership. Do you think he would be doing this purchase if he didn't feel confident in the increase of the stock price?

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