that is a misleading statement. There is nothing wrong with investing in a stock like this if you are an investor and not a trader. Long term holding doesn't affect an investor nearly as much especially if the HFT doesn't cause the company to go out of business.
Sure let them push down the share price shorting the heck out of it when there is no news, negative overall news, low volume, or whenever they have the ability to do so. SID has a set dividend strategy which kicks out dividends whether the share price is $3/share or $20/share. Those who are investors and reinvest those dividends just reinvest at a lower price right now.
So your comment is a pretty poor understanding of the markets and investing in general to make such a suggestion.
HFT messes with institutional investors way more than a mom n pop buying 5k or 10k shares.
no clue honestly if you are asking short term.
Long term trend up
Share repurchases are going to reduce float and improve EPS even if earnings don't actually improve just due to lower share count
Global markets will eventually start growing and steel is needed for infrastructure growth
high cost producers are going out of biz. SID is a low cost steel producer and low cost Iron ore producer so they can weather price drops. The real question is how long will it take the slack from capacity to disappear and prices to appreciate vs. debt they have to repay. Most their debt is longer term however so they have time.
So because of all that I feel generally good with the investment. Volatility sucks but if you don't need the funds in the short term who cares. I'd prefer share price be down so SID can repurchase at a lower price using less cash than if the shares were $10/share and they were trying to do same repurchases.
new share repurchase program announced today for another month to buy over 60m shares.
also yesterday was a selloff due to global selloff from Ukraine and Gaza headlines. in all reality what effective would that have on every companies earnings? bad for Malaysia airlines sure and maybe some other companies but not everyone.
per my research reports I get Morningstar estimates CSN produces iron ore at $30/per metric ton at flagship casa de pedra mine, $15 to get its product to dedicated raw materials port, and $20 to ship the ore to asia. All in cost is higher than Rio Tinto, BHP, and Vale but MUCH lower than the $97 62 percent price it fetches in China.
Also, share buy backs are reducing outstanding shares which increase EPS which then I believe also increases dividend because net income is divided by less outstanding shares. their dividend mandate of 25% net income doesn't change but shares outstanding has decreased and possibly substantially.
China had positive news with 7.5% GDP growth and there are lots of infrastructure plans being announced in China (shantytown renovations), India, and I'm hoping positive surprise announcements for US or Europe since lots of people need to do infrastructure buildouts.
All that being said is why I am positive on SID.
Also Met coal has decreased which helps increase profitability for steel companies.
my 2 cents
geez. another 60+ million shares authorized. I'm very interested in what they reduce their share float to after all of these buy backs. The article I found in Portuguese on the net purchases by Itau show it is a huge net buyer of SID shares while mostly all other brokerage firms are net sellers. This shows the buybacks are happening which is great. I just wish we knew how many shares were being purchased each round and I doubt we find out until next quarterly earnings.
need to remember when there isn't any company specific news the stock trades at the whims of macroeconomic events and headline news.
Technically it was a good thing for SID which had been pushed up by the share buybacks lately. Just means SID was able to buy a lot of shares at a much cheaper price yesterday because of the quick drop.
your guess is incorrect. Learn how the buybacks are being done. You will need to search and the answer is in Portuguese which if like me you don't speak portuguese will need to input the web address in google translate. It clearly shows since July the major buyer of SID shares has been the company selected to do the buy back with pretty much all other brokerage houses being net sellers of SID shares and I'm pretty sure the majority if not ALL the shares are being bought back in the IBOV market.
Anywho. Nothing can/should just go straight up or straight down otherwise there won't be a stable base of shareholders for support levels. That is why we will blow through a lot of the resistances back to the old 52 week highs when news/financials permit.
My 2 cents.
if you want to see something funnier than Zacks look at the timing of Goldman Sachs upgrades and downgrades. Coincides with opposite moves in the stock.
Oddly enough last time they went from neutral to sell you then saw that quarter that Goldman Sachs mutual funds started acquiring SID shares.
RGA personally I don't care about your updates. While i'm slightly embarrassed to say I am glad you sold out and missed the run up in hopes you would leave this board and go spam some other stock with your chicken little comments.
My breakeven point on SID is ~$4.55 so I am looking at pretty nice gains on my share count. I also got lucky and purchased $5 September call options at ~$0.20 which also doubled in price where I sold half and now play with the houses money. This doesn't include my call options that expire Jan 2015 and Jan 2016.
Please try to keep your other stock posts to their respected boards. This isn't a general stock trading message board. It is a stock specific message board and your stocks mentioned are not for this board.
Cheers and good luck to you somewhere else.
Looks like some big players are accumulating. Some very large block trades going through the last couple days. 500k in after hours today.
I'm assuming a lot of short covering is some of it but I'm guessing some funds are accumulating and we won't even know who for a while since they don't have to report these purchases until the end of the quarter.
I assume some of it is the stock buyback as well which I hope they were buying most the shares earlier in the month.
While its been a bit longer than a week how's that sucker's trade treating you?
Hindsight being 20/20 you should reconsider your bragging on public message boards in the future. While SID may go back down to allow you to buy a little higher than when you totally sold out I doubt you'll see $3.85 again unless some black swan event happens to SID.
Looks like SID did a pretty good job with their share repurchase getting most of the ~70m goal before the stock started its next grind up.
Looks like short sellers are backing off for a bit. Probably nervous going into earnings with the reduced share count. A positive surprise could certainly push this to test December highs by the end of the year.
Good luck to longs.
you mean kind of like when he posted his perfect buy and sells with months listed but then when I pointed out that the months along with prices he sold for couldn't be possible he never defended his post?
agreed. doubt he would.
recent rise has put me positive on my paper profits on SID which is always nice. :) here's to the global recovery and slow rise of SID :)
I was hoping RGA would miss the train and not get back in so hopefully we don't have to hear about his perfect timing and whining.
still hoping the stock doesn't go down to a level he decides to buy
thanks for the TA Tiger. I've missed these updates from you lately. Helps me feel good about my investment in SID especially with the "fiscal" policy china is doing with targeted investments, US economy picking up steam, continued dovish remarks by central banks, and some other misc. news points.
of course I asked myself that question and it is one of the reasons I'm positive on this company for my investment time frame. If you can't see the positives of their strategy you should ask yourself how well you understand economic and market cycles.
Just do the board a favor and move on now that you don't have shares. you post very little if anything of substance here.