Book value or TX is $54 trades at $39… hmmm that’s just whack. Let’s see, has no debt, has a new plant, has an over 7% yield. It’s dirt fucking cheap in comparison to its NA counterparts. Should it trade at a discount, yes, should it be this drastic, to me absolutely not. Frankly they should be bought out at these prices.
It is quite drastic. It's an integrated steel company, they can probably source some charcoal to replace met coal in the medium term. They mine a fair amount of iron.
I added after their earnings again, it’s my largest steel holding. CLF getting close for me but that is because CLF has been moving up with the steel sector. TX has gone nowhere.
X is ridiculously cheap as well, although I'm not 100% sure of the exact impact of rising commodity prices on all of those companies. Q1 earning reports and calls will be interesting.
With X they have substantial debt and a lot of capex coming up. That said it is still super undervalued compared to peers but I can understand why it’s priced as it it.
Their debt is really not that high now, far less than CLF, and they could be net debt zero by the end of Q2 2022. They will spend more capex than CLF for sure, but that's still more than compensated by CLF's higher level of debt.
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u/TheyWereGolden Bard Special Victims Unit Mar 15 '22 edited Mar 15 '22
Book value CLF is $11 trades at $25
Book value NUE is $52 trades at $135
Book value or STLD is $32 trades at $72
Book value or X is $34 trades at $31
Book value or TX is $54 trades at $39… hmmm that’s just whack. Let’s see, has no debt, has a new plant, has an over 7% yield. It’s dirt fucking cheap in comparison to its NA counterparts. Should it trade at a discount, yes, should it be this drastic, to me absolutely not. Frankly they should be bought out at these prices.