Recent brokers comments have caused steel stocks like US Steel to take a beating.
Goldman Sachs downgraded US Steel after a failed pump a few months back.
Credit Suisse lowered estimates after it met with United States Steel CEO at CS’s metals and Mining Conference in London.
“Q3 demand is now looking weaker than previously expected, and Q4 will be down from that level; the company’s manufacturing utilization rate in Q3 in North America is going to be lower than Q2’s 82%; 2011 automotive demand is not looking good, with orders so far below expectations; lead times are compressing, from 6 to 8 weeks to 3 to 4 weeks; met coal costs are squeezing margins.”
The housing market has been really bad lately. Traders are betting on a double dip in the housing market, and they are right unfortunately.
Technicals to start buying US Steel stocks.
2 buying levels are observed.
B1 - $41.5
B2 - $39
If tomorrow’s new housing sales figure is bad, then B2 is the better option.
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