I mentioned a few times how excited I am for 2022, and between launching my partnership with Tegus, putting out a note on forced selling at NTP, prepping to record a podcast with Chris, and rough drafting my 2022 YAV “empire” post, I’ve tried to really hit the ground running…. but the main thing I’ve spent time on this week is looking at stocks that are really cheap and buying back shares.
On $X specifically my guess is the market is worried about cooling demand for steel in China due to their property sector cooling off. China accounts for almost half of the world's steel demand. Steel prices have been in pretty rapid descent in the past few months and even though $X trades at a value multiple and mgmt pulling the right levers, it doesn't usually decouple its correlation with steel prices. Maybe the answer on $X is that simple (steel prices need to stabilize)?
On $X specifically my guess is the market is worried about cooling demand for steel in China due to their property sector cooling off. China accounts for almost half of the world's steel demand. Steel prices have been in pretty rapid descent in the past few months and even though $X trades at a value multiple and mgmt pulling the right levers, it doesn't usually decouple its correlation with steel prices. Maybe the answer on $X is that simple (steel prices need to stabilize)?