MT is considerably bigger, better, far more efficient and controlling more market share than it was 5 years ago when the stock was at $100. Their latest fire sale acquisition is a big deal, far more significant than most of the clueless analysts realize. Were it not for the economic situation in Europe right now, they'd be turning substantial profits right now. But things are beginning to come around. The reason to be into MT is for the long term return.
MT has done very well for itself through the recession. Steel is not about to go away as a very critical resource world wide. A lot of infrastructure has been neglected for the last 5 years and soon will be boosting steel demand as this deferred work starts catching uo. MT is poised to start reaping the benefits. Expect to see growing profitablity over the next two years and I suspect dividends to be returning shortly. As the numbers start returning, the stock price will be back in climbing mode. Most investors don't have a clue about this industry and are looking for short term gains. MT is at a very good value price right now and is well worth loading up on for the long haul. By this time next year, people will be wishing they would have got in at this price level.
Well, that is a silly reason to be in this stock and if you understood it better, you'd realize that is very unlikely. The Mittal family controls too much of this company and they have no desire to break things up for a little gain. They are in it for the long haul and are only concerned with getting bigger and better. They are the worlds largest steel company today and steel is all they are into. They keep growing market share and are in the position to lead steel pricing. Steel is not the kind of thing that would benefit by a break up. MT got where it is buy buying up smaller pieces that couldn't cut it and getting them for fire sale prices. The benefits come with higher efficiencies of being bigger. Mittal knows how to do this very, very well.
The reason to be in this stock is for the long haul. But you are right in that all things considered this stock should easily be at $30 today, if not more. As profitability returns and grows along with the continued decrease in debt, the stock will be gaining far more interest. You can wait for a buyout and break up and you will make money, but not because that happens.