There seems to be an oversupply of steel right now, but this stock has an extremely high cash position and a very low p/e. I will take a look at this again tomorrow. I had several stocks down even more than SID today, but I will consider taking a position here.
"""but this stock has an extremely high cash position"""
Right. Yahoo! Key Statistics shows $5 per share in cash, for a stock selling @ $8.78. If this were a US company, I'd look at the most recent SEC filing to double check the unreliable Yahoo, but no SEC filings on an ADR.
So, can somebody tell me how to look at SID financials without learning to speak Portugese?
I already have a good position but if it dips in the low 8's I will be adding some more. The Olympics and the World Cup still need their stadiums, airports, etc... so some of the steel will be bought from them.
its irrelevant. Sure, in the long run it will get to the mid teens, where it should be (I'd say in 2-3 years when we move closer to the world cup and the olympics). In the short run it is most likely headed to $6 or below. No one wants this stock, the chart is completely crippled from a technical standpoint, and the value guys that buy on fundamentals seem to be sitting on the sidelines for now. Markets are irrational in the short term, hence the stock could trade at 1x earnings and no one would care. Keep in mind that yahoo numbers are usually way off btw...I think I read somewhere that analysts have moved their numbers down significantly for 2012, hence that 3x P/E is now probably more like 7-8x. Still cheap though, obviously. Very frustrating watching this thing trade where it is. Like I said, patience is virtue, we should expect it to be back in mid teens in a few years.