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ArcelorMittal Message Board

  • great_stox great_stox Aug 17, 2006 9:44 PM Flag

    A Proud Owner of a Looser Stock

    Are you still one?

    The board seems to have reached a consensus: it's time to get out of MT and move on.

    We were punked by the Indian guy! :(

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    • I second the motion. I told you guys a while ago, that this stock is like a guy who can't up it and if he did, can't hold it. You see the trend, you'll know what I mean.

      I am also stuck in this stock. I sunk huge amounts of money averaging at $38.

      Mr. Mittal doesn't care. But we do. I can't sell off at this point because I'd lose hell a lot of money.

      • 1 Reply to espy.2006
      • This was posted a whilst back by dealaw2000.

        Dear investor,

        I understand your concerns and I can assure you that we are very active.

        As you know we are currently in the middle a tender offer which creates some artificial movement and arbitrage from large institutional and hedge funds.

        As you have probably seen we initiated yesterday a combined investor road-show with Arcelor management to present our offer and to highlight our strong undervaluation. At this occasion, we have also communicated on our USD15bn EBITDA guidance.

        On the 2 of August, we will publish our results and give more details about our integration process.

        We are confident that a soon as our offer closes and investor visibility improves, our share will recover.


        Julien Onillon
        Director Investor Relations

        Assuming this is an accurate email...The last paragraph is asking for a lawsuit. It shows that this guy is not a seasoned Investor relations guy. If the share price does not recover, it implies that either that investor relations visibility has not improved (i.e. He is not doing his job) or he is inviting lawsuits for making statements that are false.

    • There does seem to be some pessimism, though I don't know if there is a consensus to sell. If that were obvious I would think it a great time to buy.

      Still, MT did pay retail for this acquisition, no discount. The first increase in the bid was the point when the share price broke back under $40 if I recall correctly (correct me if I am wrong) So there was clearly positive sentiment to the deal when it was seen as immediately accretive. And that faded as the price rose. Nothing new there.

      The question finally is whether the value and earnings power are there to support $40-$50 shar eprice in the next 12 months. I still beleive the stock is discounted by some post-deal uncertainties, and that these issues will pass. My only concern is if they will pass before the steel market weakens.... Do not have a clue about how to answer that...

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