Gerdau S.A. (ADR)
-
Is Brazilian Iron & Steel Industry Likely To Grow
By Victor Selva - May 21, 2013 | Tickers: SID, GGB
According to the Brazil Steel Institute, steel sales in Brazil are likely to increase 7.7% in 2013. Various initiatives, such as the Soccer World Cup, the 2016 Olympic Games, the pre-salt oil reserves and the government’s PAC-2 infrastructure program, are expected to boost the industry in the next few years. However, a stronger currency and government incentives have produced strong import pressure in Brazil, which has weighed on more »
-
Three Brazilian Market Leaders
By Damian Illia - May 16, 2013 | Tickers: BAK, BRFS, GGB
These three Brazilian companies are the biggest players in the country’s respective industries, and are leading companies in Latin America. The first company is from the chemical industry, the second from the food industry, and the third from the steel industry.
Petrochemicals
From the chemical industry, Braskem (NYSE: BAK), Latin America’s largest petrochemicals maker, reported a surprising 49% year over year (y-o-y) increase in net income in the more »
-
Steel and Iron Ore: Part 2
By Rupert Hargreaves - May 9, 2013 | Tickers: GGB, PKX, TX
In the first part of this piece I looked at the state of the Iron ore industry and how there is profit to be made from undervalued miners. This part focuses on the steel market, its outlook and some undervalued steel producers.
The world demand for steel continues to grow
During April, the World Steel Association released its short range outlook for 2013-2014, forecasting that global steel use will increase more »
-
Are These Steel Stocks Undervalued?
By David Gould - March 8, 2013 | Tickers: MT, GGB, X
The global steel industry faces pressure from decelerating demand growth in China to overcapacity and political risks. This perfect storm of headwinds, however, has largely discounted steel equities and created the opportunity for large returns. Below, I review on Gerdau and US Steel and provide my on the risk and opportunities for both.
Gerdau (NYSE: GGB)
As the leading long steel producer, Gerdau is looking to get aggressive on growth more »
-
Brazil : Risks and Opporunities to Consider
By Piyush Arora - March 5, 2013 | Tickers: BRFS, GGB, PBR
Although BRIC nations (Brazil, Russia, India and China) offering staggering growth potential for almost all industries, they also present serious downsides risks. Talking about Brazil, it’s continued high inflation has been a problem for the country, and as a result its currency has declined by 22% over the last year. To curb high inflation, its interest rates have been kept fairly high (7.25% benchmark interest rate,) which in more »
-
With This Much Volatility, Should You Buy These Steel Stocks?
By David Gould - February 12, 2013 | Tickers: MT, GGB, X
Basic materials can be one of the toughest sectors to invest in. While its seemingly easy to look at a company like Target and extrapolate growth based on consumer demand, it's very hard to predict where, say, rolled steel will go from here. I therefore encourage looking at the macro trends against market expectations to make an informed investment decision. Below, I review two major steel producers with this more »
-
Risky Business, or "How to Invest in Steel"
By David Gould - January 22, 2013 | Tickers: MT, GGB, X
Basic materials are often one of the riskiest stocks to invest in. In iron & steel, there are several problems: overcapacity, price volatility, labor unrest, and political uncertainty. Several large producers have fallen to their knees from the financial crisis, and, unlike many of the top companies elsewhere, some have even fallen again. Is now the time to take advantage of low prices? Or should we expect continued problems in the more »
-
Surprise: A Value Play in Steel
By Piyush Arora - January 9, 2013 | Tickers: MT, GGB, X
-
Despite Steel Uncertainty, Consider Buying These Two Stocks
By David Gould - December 26, 2012 | Tickers: MT, GGB, X
It is no secret that the steel market has one of the riskiest environments. Surpluses and high labor costs have constrained margins and limited upside. However, many stocks in the industry are now very cheap on a historical P/B basis and are positioned for upside from here. This could be seen in the high-digit gains that were recorded just from rosy China PMI data. Below, I review three steel more »
-
Danger Stock Picks: 3 Steel Producers To Avoid
By David Gould - December 10, 2012 | Tickers: MT, GGB, X
If you are looking to buy low and sell high, I encourage you to not jump into bear markets or "play against the tape". Sure, the large steel producers could recover a few years down the road; but, for now, many of them are going to continue to struggle. I recommend looking at geographical exposure and predicting macro events to gauge how safe a company's operations are. Below, I more »
-
Two Brazilian Stocks for Any Portfolio
By Federico Zaldua - November 29, 2012 | Tickers: BUD, ABV, GGB, EWZ
Brazilian equities took a hit in 2011 when the MSCI Brazil index went down by 25%. In 2012 the index didn't do much better, down again by 9%. But, after a series of interest rate cuts and a sharp currency depreciation, growth is expected to accelerate from 2012's 1.5% to 4% in 2013. Furthermore, Brazil's long term fundamentals are intact: institutional factors are ameliorating, and a more »
-
Brazil is Building Roads. Could It Be a “Bull Market”?
By Fani Kelesidou - November 28, 2012 | Tickers: SID, GGB, OIBR, VIV, TSU
In an effort to boost the domestic economy, Brazil decided to pave its way towards high growth rates by building roads and railways. For the full year of 2012, Brazil's GDP growth is estimated to be less than 2 percent, the lowest annual performance since 2009. Brazil's need to modernize the economy is urgent, and infrastructure improvement might be a catalyst. After all, the 2014 football World Cup more »
-
Against The Grain: Perfect Time To Buy Steel
By Edgar Ambart - November 1, 2012 | Tickers: MT, VALE, GGB, NUE, STLD |
Two years ago ArcelorMittal (NYSE: MT) gave a lasting legacy to the London Olympics when it constructed the Orbit in the east borough of Stratford. This 114 meter tubular steel structure shown below, which is 22 meters taller than the Statue of Liberty, is located near the Olympic Stadium, offering a panoramic view of London and surrounding areas.
"It is a fantastic way to give a lasting gift to London more »
-
3 Steel & Iron Stocks to Buy Now
By David Gould - October 19, 2012 | Tickers: MT, VALE, GGB
If you are bullish on the global macroeconomy, I strongly encourage backing steel & iron producers. They have been slammed in recent years from a slower-than-expected recovery, and the result is that many stocks are trading significantly below intrinsic value. As the economy picks back up and is strengthened by stimulus spending here and abroad (particularly in emerging markets), we should see strong stock price appreciation.
-
2 Steel Producers To Buy, 1 To Avoid
By David Gould - September 25, 2012 | Tickers: MT, GGB, NUE
After seeing the depths of the financial crisis bring major iron & steel makers, like US Steel, to their knees, many investors are, understandably, on the sidelines. However, this has caused otherwise solid producers to become substantially undervalued. While I am attracted to ArcelorMittal (NYSE: MT) and Gerdau (NYSE: GGB), I believe that Nucor (NYSE: NUE) is not worthy of an investment.
ArcelorMittal & Gerdau
I remain particularly optimistic about ArcelorMittal given more »
-
The Olympics are Coming to Brazil - Why Now is the Time to Buy
By Simon Erickson - August 10, 2012 | Tickers: BRXX, CIG, GGB
The Olympic Games are no doubt one of the most exciting events to watch in the world.
- Michael Phelps won his 19th Olympic medal, making him the most decorated Olympian of all time. Will this really be his last Olympics? Only time (and his mother) will tell.
- Usain Bolt won his 2nd consecutive gold medal in the 100m dash, showing that he is still the fastest man in more »
-
Short Sellers Are Having a Field Day With This Steel 6-Pack
By Soroush Pour - July 17, 2012 | Tickers: GGB, NUE, PKX, SMS, TX, WOR
In our current market environment, sentiment can seemingly change on a whim, so it’s crucial that investors consider a stock’s short interest before buying. Typically, an increased amount of shorting means that the Street has grown less fond of a particular stock, meaning that you might want to adjust your expectations accordingly. In some cases, overselling can sometimes have a positive effect on a stock’s price, so more »
-
Billionaire Ken Fisher's New Buys: 3 Potential Longs, 2 to Avoid
By Ashish Sharma - May 14, 2012 | Tickers: BCS, GGB, HDB, NES.DL, TTM
Fisher Investments is an independent investment advisory firm founded by billionaire Ken Fisher in 1979. The firm manages ~$37bn in equity assets primarily adhering to a value oriented approach. I discussed Fisher Investments Top Holdings in a previous article. In addition to the top holdings, it is also interesting to have a look at the new positions Fisher Investments is building. The following is a list of top five new more »