I am finally giving in and putting in a buy order tomorrow for some Timken stock - I always keep my eye on it, but most of my investments are in technology and retail, because I feel U.S. based heavy industries are in their sunset years. BUT - at a PE of 6.5 (based on today's price) I can't pass it up. I have NEVER seen a pe this low - and a dividend!
Question: with the international meltdown of Asia, Latin America, won't those countries flood the market with cheaper steel? The basic problem in Korea, Japan, etc. is overcapacity, and Japan steel companies are going into bankruptcy. Won't Timken be impacted by "steel dumping?" What is the worst case?