Time to SELL... read this...the collapse is coming
LONDON--European steelmakers are forecast to report lower profits in the fourth quarter as the industry grapples with over-capacity and weak demand, particularly in Europe.
"With regional steel-making capacity utilization running under 75%, we have poor expectations for pricing power and margin expansion," said Jefferies in a note.
The average European Union all composite steel price fell 9.4% on the year in the fourth quarter, and EU steel output dropped 5.2%, according to U.K. steel consultancy MEPS International Ltd. Steelmakers have been idling production capacity in response to anemic demand.
Analysts expect the sector will face another tough year ahead, with Fitch Ratings forecasting an output drop of up to 3% in 2013, after falling nearly 5% in 2012.
ArcelorMittal's Fourth-quarter earnings before interest, taxes, depreciation and amortization is forecast to fall 30% on the year to $1.2 billion, according to a Factset poll of 17 analysts. The company's net loss is forecast to widen to $1.25 billion from $1 billion in the same quarter of 2011.
If you have followed MT in the last year you know that it goes up to $17 and falls back to $15 or so. You have to buy this company on the dip. However, the last couple months it has not fallen as far when it dips. It's making lower lows and higher highs. It is breaking out if you just look at the chart alone. AA and X are about to make similar charts. I believe the steel and industry is going to be much bigger in 2013. More and more countries are starting to build again. I believe AA, X, and MT will go up at least 10%. All are oversold. MT seems like it has the most potential. I don't own any of the stocks mentioned, but did own MT for a few months in 2012 and follow its price every day.
Actually now is the time to sell. China showed slowing last Q......compared to the previous Q so the growth from China which is driving the global stock markets is cooling off. Also inflation is again rampant in China which means less stimulus. All you need to look is at the GLOBAL DEBT picture every country is maxed out on debt with no end in sight??? Ask yourself who's on the hook for all this borrowed money???? WE ARE!!!! No #$%$ the stock market is at an all time high the world governemnts have pumped 10 trillion dollars into stimulus the last 5 years!!!! Unfortunately all that money needs to be paid BACK by us the consumers......HELLLOOOOOOOOO Can anyone else say giant BUBBLE!!!!