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All has been quiet on the Infrastructure Bill front since it was initially approved by JB. Latest CC from $NUE indicated no visibility of orders from that yet. We all knew that not many Infrastructure projects were 'shovel-ready' and there would be some time interval of a year or two before these projects get scoped and engineered. Obvious tailwind for the steel sector. An update is overdue from the WH.
If you dig in their 10-K you'd see Trinity Industries (railcar manufacturer) was one of their biggest customers. TRN reported and their business is strong. This is their guidance going forward and I bet a lot of this steel is coming from FRD: "New railcar orders of 4,335 and railcar deliveries of 2,510; book-to-bill ratio of 1.7x" Also in a way $NUE and $X and $STLD in steel demand since they supply the steel too. Shows the steel sector is strong
Just need to look at $NUE and $STLD earnings to get insight into how FRD's business is shaping up. This is from STLD's release, about the current quarter being super strong, and also the continued ramp up and improvement at Sinton, which is where FRD's new facility should start up any day now: "Customer order entry activity continues to be healthy across all of our businesses, conflicting with the more pessimistic emotion in the marketplace," said Millett. "Despite softening flat roll steel pricing, our steel order activity remains solid from the automotive, construction, and industrial sectors, with energy continuing to improve. Our steel fabrication operations order backlog remains at near-record volumes and forward pricing levels. This combined with continued healthy order activity and broad customer optimism, supports strong overall demand dynamics for the construction industry.
"Operations continue to ramp up at our Sinton Flat Roll Steel Mill, and the team has already achieved run rates of 80 percent through the hot side. However, they have been challenged with unexpected power and equipment issues that have impacted their operating time in July. The team expects to realize meaningful improvement for the remainder of the year."
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Excited to see the new $FRD Arc Furnace up snd running at $STLD Sinton Campus. Better hope $NUE or $CLF doesn’t snap Friedman up on the cheap as they have super low shares issued. Big buyout target in Friedman Steel. Their locations cover most of north and south central US states as they’ve acquired 2 new mills this year. Keep an eye on it. Developing story.
$X Wow good news after good news: The reason why all Steel companies $NUE $CLF was low due to the expected tariff removal. But it ended as a truce with quota's and also limits and checks so Chinese steel doesn't end up in US. Add this to expected infrastructure bill on Tuesday its clear skies for steel industry.
The fact it didn't collapse after earnings it's a good sign. An infrastructure renaissance will push $NUE to higher highs. It's the last of the industrial names I own as the economy is moving into middle part of mid-cycle.
$X, $CLF, $NUE....are all infrastructure plays. Look at May 2008 prices when Congress approved the infrastructure bill. $X might revisit $180, plus inflation factor...$200 is possible.
$NUE Gapping up, $X on its way to join so us our buddies $CLF and $STLD excellent...buy the news + extra incentives in BBB bill for clean steel (10% credits) ..limits + banning and new tariffs on china. Market is liking it and the HRC looks good too...the shorts are going to get shock of their life time and $X that short squeeze will begin?
$NUE $CLF X is just getting started. It has 22.5% short interest and it just cleared one bar by monster beat. Literally 6.9$ just for rhe quarter. Better vehicle for infrastructure bill is $X
$TMST has an immaculate balance sheet that doesn't look like a traditional steel company. Negligible debt (1/5 of EBITDA). Tons of cash. Market value at $880M. Wouldn't be be surprised if a much larger steel company like $NUE $STLD $X $CLF acquire Timkensteel for $1.5B or even $2B.
$NUE, $CLF, $STLD Better bet for steel $X ? due to its 19.5% short interest. I moved my nue money into X too for infra squeeze play and lowest PE among the 4.
wow, record profit, record revenue, record shipment, record steel fabrication, record cash flow, everything hits RECORD. Supply affected by Russia and Ukraine, the 5th and 13th steel producers. Robust demand from automotive, construction, industrial and soon infrastructure. The White House said all infrastructure projects funded by the fed must use steel produced in the US. Over $100B for bridges, roads, airports, railways, etc. GL long $nue
$nue & $stld are growth and undervalue stocks. Demand is over supply with soon over $100B infrastructure spending will spur growth. P/E is mid single digit should be at least 10 conservative. GL long
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"Operations continue to ramp up at our Sinton Flat Roll Steel Mill, and the team has already achieved run rates of 80 percent through the hot side. However, they have been challenged with unexpected power and equipment issues that have impacted their operating time in July. The team expects to realize meaningful improvement for the remainder of the year."
https://www.politico.eu/article/eu-braces-for-steel-quotas-to-end-trade-war-with-us-biden/
Price/Book: $X=0.97, $STLD = 2.2 $CLF = 2.4 $NUE = 2.62
Why is US Steel trading at such a low premium?
It is not debt:
Total Debt/Equity: $NUE = 41 $X = 45, $STLD =51, $CLF = 100
Is market just being irrational or is there something I am not taking into account such as a big lawsuit/liability that is not in the books?
Net profit $1.1B from net sales $5.6B. $nue should posts a record top & bottom as well tomorrow.
Supply affected by Russia and Ukraine, the 5th and 13th steel producers. Robust demand from automotive, construction, industrial and soon infrastructure. The White House said all infrastructure projects funded by the fed must use steel produced in the US. Over $100B for bridges, roads, airports, railways, etc. GL long $nue