With economic weakness stretching from Europe to Asia to North America,
there is no shortage of resource and commodity companies that appear to
be trading below fair value. That's not quite so true in the steel
sector, though, where valuations have seemingly held up a little better.
Unlike global steel giant ArcelorMittal (NYSE:MT), which does appear to be meaningfully undervalued, South Korea's POSCO (NYSE:PKX)
appears to be enjoying a relatively healthy benefit of the doubt from
the Street. While I certainly wouldn't argue that POSCO will go along
for the ride when investor sentiment on steel turns more positive, I
think the margin of error here is too slight to make this a compelling
buy today, even with the stock near a 52-week low.
Continue through this link:
http://www.investopedia.com/stock-analysis/071013/poscos-aboveaverage-quality-already-shares-pkx-nue-mt-stld.aspx
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