Ternium S.A. (ADR)

• Tenaris: Still Promising

  By Damian Illia - May 14, 2013 | Tickers: TS, TX, VLOUF

  Producers of OCTG (oil country tubular goods) have been benefiting from strong demand from exploration and production (E&P) companies, as oil and gas drilling increasingly is led by the development of deepwater and unconventional energy reserves. This is a niche market with few major players. Among them, we find Tenaris (NYSE: TS) and its main competitor, Vallourec (NASDAQOTH: VLOUF), headquartered in Boulogne, France.

  Tenaris’ revenue has generally slowed in 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 »

• Latin America: Two Longs, One Short

  By Damian Illia - April 29, 2013 | Tickers: BAK, KOF, TX

  Today I focus on three very different Latin American stocks for three very different reasons. There is value in two of them, but there’s also a very big difference between the two. The other pick is a company that has disappointed me. Let’s take a detailed look into reasons for going long or short on these companies.

  The market is taking an interest in Brazil's Braskem

  Braskem more »

• A LatAm Portfolio For 2013

  By Federico Zaldua - January 14, 2013 | Tickers: BUD, CX, ABV, TX

  Latin America (LatAm) is my region of expertise. I invest almost exclusively in LatAm, so I got to know pretty well the companies in the region. I have also hold LatAm equities for long periods of time so I always look closely at equity valuations within the region. Nowadays I find that on a price to book versus relative ROE basis LatAm has a 13% premium relative to other Emerging more »

• Billionaires Are Betting on Small Steel

  By Meena Krishnamsetty - January 7, 2013 | Tickers: AKS, MT, STLD, TX, X

  What's the best way to play a potential turnaround in the steel industry? Well it’s not the company you would think. United States Steel (NYSE: X) is considered the bellwether of the steel industry, but we believe AK Steel (NYSE: AKS) is the best bet in this space. Cliff Asness of AQR Capital also thinks so and is the top fund owner of AK Steel, owning 4.3 more »

• Why I Am Buying Cyclical Stocks

  By Rupert Hargreaves - December 14, 2012 | Tickers: ABX, CAT, CLF, DE, TX

  Despite the whole market looking undervalued right now, one of the most undervalued sectors seems to be cyclical stocks. Global macroeconomic worries have driven these stocks down to such low levels that their valuations are now inconceivable. With companies such as Caterpillar (NYSE: CAT) and Deere & Company (NYSE: DE) trading on as little as 10 times forward earnings; cyclical stocks are starting to look appealing for the value investor.

  I more »

• The Global Steel King is Cheap

  By Federico Zaldua - November 27, 2012 | Tickers: AKS, MT, MTL, TX

  With the American economy still in recovery mode (2013 growth is expected to be 2.1%), a slower growth trajectory for the Chinese economy (2013 growth is expected at 8%), and Europe’s flirtation with a recession; steel companies have been through a tough period. Overcapacity, weak prices, and excessive leverage have been put pressure on the steel sector, but I think the worst is behind us.

  As it’s more »

• Here Are Howard Marks’ Newest Stock Picks

  By Meena Krishnamsetty - September 18, 2012 | Tickers: VALE, GTY, PBR, TTM, TX

  Howard Marks helped found Oaktree Capital Management in 1995 with a group of individuals who worked at TCW Group. Prior to helping form and taking the lead at Oaktree in 1995, Howard Marks worked for ten years at the TCW Group, Inc. overseeing distressed debt, high yield bonds and convertible securities investments. Oaktree is a Los Angeles based investment firm that specializes in alternative investments and maintains an emphasis on more »

• Will China's Slowdown Hurt this Equipment Manufacturer?

  By Muhammad Bazil - September 17, 2012 | Tickers: CAT, CYD, TX

  It seems that Caterpillar’s (NYSE: CAT) impressive earnings growth has hit a roadblock that even their heavy machinery can’t get past. A global economic slowdown is finally taking its toll on the company. Caterpillar reported impressive earnings growth last year – between the third and fourth quarters Caterpillar posted an increase in earnings of about 35%. The party quickly came to a halt when earnings only rose seven cents 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 »

• Hardhats Required Beyond these Valuations

  By Maxxwell A.R. Chatsko - June 5, 2012 | Tickers: AA, AP, PKX, TX

  I know major news outlets make it seem like the economic sky is falling, but it isn’t. The recent flow of the market has led to some head-scratching valuations in industrial mining and materials companies. Yes, there is weakness in Europe, slowing growth in China (only 8% now), and some loose ends to tie up here at home. And yes, the industry has to sprint just to stay in more »