Valuations looked pretty washed out across the steel sector going into third quarter earnings, and my last article on ArcelorMittal (MT)
was titled “ArcelorMittal Likely Approaching The Bottom”. Since then,
the shares are up more than a third on renewed optimism that steel
prices have bottomed, that margins likewise have bottomed, and that the
company may walk away from its questionable decision to take over
Italy’s Ilva.
What is ultimately going to happen
with Ilva is anybody’s guess; ArcelorMittal has offered the Italian
government a path toward a resolution, but sound decision-making may be
too much to expect. I do still believe these shares are undervalued, but
with the market arguably now leaning too positive toward the steel
market, I’m not inclined to push my luck here.
Read more here:
ArcelorMittal Up Nicely Off The Bottom, But Substantial Uncertainties Remain
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