is a really good article about IST, as shared on
this board last week. It's too long to copy but I
would heartily recommend the article to everyone.
Among other parts of the article: "The cheapest steel
producer out there is Ispat International, a company that
offers the best leverage for a turnaround in the entire
sector - and is probably the largest steel company that
you've never heard of". amen. "trades at a P/E based on
next year's earnings of less than 6". amen.
Folks - as soon as this stock is re-discovered, we're
looking at a minimum of $20 per share. Not bad.
No, I wouldn't take any bets on a stock price.
The analysts may have awakened and are beating their
drums...magazines flout the stock, too....who cares?
back, have a cigar and nice glass of scotch, and forget
about IST. Come back in a year and maybe your
15...20...25 will be here. Short term? no. IST is a pure long
term play...if you want the fast plays, go with MSFT
or the like.
IST is a long term hold, and their strength has
been buying assets for 30c on the dollar.
know the Mitttal's personally and have complete faith
in their drive to be the cheapest steel producer in
the world, whilst making a profit.
will be well rewarded, just look at all the analysts
comments for this stock.
The absolute best time to buy a stock is when
it's beaten down as is IST. This is a long term
investment, where the holder of these securities must simply
buy and hold.
Do you seriously think that
steel is going to be out of favor forever? Isn't it
logical that the big, sluggish, unionized American mills
IST is the biggest bottom fisher
of all, picking up opportunities as they arise,
nurturing them, and producing product at prices far below
typical American prices. They are in no rush to become
well known and "attractive" as an investment. To the
contrary, the Board continues to authorize stock buy-backs
to the extent that this will eventually be almost a
IST has fabulous cash flow and
earnings when all the others are crying about import
quotas, dumping and every other excuse
So look for the long term. This will be a $35 stock,
again, and I for one, am patient and will enjoy the
Well, I must admit that the 'Smart Money' article
first facilitated my interest within this company. As I
further investigate this company though, I must say that
there are numerous external factors which the
organization has to contend with. Aside from a global
recession and falling prices for steel, IST is facing
increased competition from global suppliers, willing to
dump at any price. This is a dangerous mix/environment
to buy, especially for such a volatile company.
Smart Money was stating P/E of 6 based on PROJECTED '99
earnings. I never liked to base PE on projections.
Projections are many times off target.
At 7, this
company was a buy. At 11 I am hesitant. I will probably
get in, but not at 11. I see a dip under 10 coming
soon. At this time, I may get in.
Any work yet
on Next months earnings?
Thanks for your evaluation on the Smart Money
Article. All the stocks I have bought through reading
Smart Money articles have done well but you're right in
that the price that they quote is about two weeks old
and they do not always give a full analysis of
companies they recomend. I did go ahead and buy in today.
IST has a great growth rate and a low P/E.
The "smart money" got into IST in the 7 dollar
range. When the magazines and business shows start
pumping the stock, that means the "smart money" is
wanting to get out. They generate excitement to draw the
"dumb money" in to keep the stock up while they sell
off their shares.
You're absolutely right in
your analysis. With a magazine like Smart Money,
typically by the time I (or anyone) gets their issue of the
magazine, or happen to see the article on the web, the
stock has already run up quite a bit base on the
excitement. Then, one of two things happens. Either the stock
holds where it is, and the publication makes bold
claims how they "foresaw" the rise in the stock. Or, the
stock falls back down and the daytraders and shortimers
make a good buck, while the typical investor is left
holding the bag. I don't think that most people realize
this, which you pointed out. Your point is very good.
Smart Money Magazine is touting IST because they
believe it is going up. Their life blood is their readers
and recommendations that fizzle will put them out of
business. They continual give a "report card" of their
stock picks- most have decent returns. In general, you
can trust their analysis------ IST to 20 soon!!!!