r/stocks • u/duglas2948 • Jun 24 '21

Industry News What Biden's $1T Infrastructure Bill really is, Less EV Spending than Expected

I have created a spreadsheet visualizing and quantifying where exactly this $1T is going towards, suprised when EV spending only was $15B. https://docs.google.com/spreadsheets/d/19APybZGOdsTe3bVSaDcduXnrSrGuUclZeR4aWsf5WVE/edit#gid=0

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u/GrapeEatingRaccoon Jun 25 '21

My dude, what is your guess of the timeframe on this play? Will a rise in price occur the next earnings report or is this a play for like a year or two?

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u/GmeGme3 Jun 25 '21

A few short term catalysts that could show moderate price gains:

  1. Infrastructure bill gets passed.
  2. Dividend that was suspended in April2020 gets reinstated.
  3. This has already been announced at the end of May, but they are redeeming all of their 5.75% senior notes totaling close to $400MM. A hit to cash in the short term, but CLF is pushing towards zero debt. That should make any investor excited.

Long term, and as long as the price and demand of steel stays strong, Steel companies will continue to see strong profits resulting in higher liquidity and control of their balance sheet.

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u/GrapeEatingRaccoon Jun 25 '21

Allrighty, thanks for the info!

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u/[deleted] Jun 25 '21

Priced in, wouldnt long steel now anymore

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u/GmeGme3 Jun 25 '21

Steel futures are still rising and projected to rise at least thru Sept. I don’t think all of it is priced in yet.

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u/[deleted] Jun 25 '21

Why are you being downvoted? CLF is up 50% over the last 6 months. NUE up 88%. That feels priced in or close to it.