A laggard so far in 2020 and over the past year, ArcelorMittal (MT) has nevertheless shown some solid momentum since the company's unexpected capital raise back in May. All in all, despite pretty undemanding valuations for most steel names, the sector still hasn't followed the rally in shorter-cycle industrials as investors remain concerned about excess capacity and the likelihood of more sustained weakness in prices and margins.
Those concerns are valid, but also reflected in the price. What I think may not be so well-appreciated is the company's opportunity for further self-help (including asset disposals), as well as the improved liquidity position and improved agreement on the Ilva business. While ArcelorMittal isn't the best-run steel company (by a large margin), that's not really an impediment in cyclical upturns, and I see this as a name worth considering if investors want to start positioning themselves for a cyclical upturn.
Read more here:
ArcelorMittal Outperforms On Costs As The Industry Deals With Absent Demand
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