I agree that it looks fundamentally undervalued. If you are willing to hold it for 3-5 years, Im sure it will come back into the mid teens at some point in that timeframe. In the short run, though, it might go to 6 or lower. The market doesnt care about fundamentals when the world goes into a deep recession and fear spreads across the financial markets.
I can't go any lower as it would entice majority owners to start buying as it is way bellow replacement value. The other interesting point is that stadiums, roads and airports for the Olympics and World Cup are not constructed yet meaning they will need to use steel and cement. Finally this week's interest rate cut might mean the begining of devaluation of the Real which has made it very difficult to export for Brazilian companies. I should bump start it and hopefully in a year we will be in the 15-16 range. To complement this you get a great dividend to keep waiting for the stock to come up.
I have been looking for an entry point....I still see weakness in the steel market for the next 12 months...SID has a rock solid balance sheet, coal and energy as well as steel....just waiting for the right time to get in....I also own SCCO as a core position on an economic rebound...Divy is not to shabby for either of these gems either.