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Varchild2008 (84.38)

Nevermind.... Liquidate Steel or at least cut your stake in half...

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September 09, 2008 – Comments (5) | RELATED TICKERS: SID , X , NUE

Crap.... I've done the math and looked at the chart and the situation with my steel stock is that it's going to probably dropped to about $7 a share.  That is if this momentum continues.

So.. Do I stomache $7 a share?   Or do I bail out tomorrow first thing in the morning, stomache the massive loss, and then what? ? ? ?

Going back to an earlier article I wrote.. The only sector to invest your money in is the "FOOD and Beverage Sector."  That's it.  beverage sector or bust.

So.. I guess.. I guess I can live with dumping half of my stake or perhaps ALL of my stake and throwing the cash into Dr. Pepper Snaple Group.

Of course.. I still stand firm that this massive sell off on Steel and all of this crappy bad news about China Iron Ore pricing....It's all meaningless short term stuff...  Hold the shares long enough and it will go back up.

But.. I don't think I have the courage to do this:-(

P.S. I am beginning to hate the stock market:-(

5 Comments – Post Your Own

#1) On September 09, 2008 at 9:32 PM, Varchild2008 (84.38) wrote:

Bleh.... I can't do it. I know what will happen...

I am going to simply hold my shares and deal with the consquences of it falling to $7 a share.

But you know what?  I'll just put a BUY on the thing when it hits my $7 a share price target.

Ultimately.... It is stupid to second guess yourself and your personal convictions.  If I believe this stock is what it is for the long term a decent investment then I need to stick with that unless there's reason not to.  I simply do not see what Wall Street is whining about. 

I simply don't agree with it or maybe I am dumb and don't understand how Chinese Iron Ore Pricing could even remotely negatively effect (SID) when CSN mines its own Iron Ore!  That steel company does not BUY Chinese Iron Ore.

And any price hikes will eventually be delt with by way of financial, european rate cuts.  We all know eventually rates will have to be cut.

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#2) On September 09, 2008 at 9:33 PM, Varchild2008 (84.38) wrote:

Bleh.... I can't do it. I know what will happen...

I am going to simply hold my shares and deal with the consquences of it falling to $7 a share.

But you know what?  I'll just put a BUY on the thing when it hits my $7 a share price target.

Ultimately.... It is stupid to second guess yourself and your personal convictions.  If I believe this stock is what it is for the long term a decent investment then I need to stick with that unless there's reason not to.  I simply do not see what Wall Street is whining about. 

I simply don't agree with it or maybe I am dumb and don't understand how Chinese Iron Ore Pricing could even remotely negatively effect (SID) when CSN mines its own Iron Ore!  That steel company does not BUY Chinese Iron Ore.

And any price hikes will eventually be delt with by way of financial, european rate cuts.  We all know eventually rates will have to be cut.

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#3) On September 09, 2008 at 10:16 PM, nuf2bdangrus (< 20) wrote:

I often look back at long term charts and see stocks with amazing long term returns that can have painful corrections.  I used to bail and lose $, and on an IPO or very  small cap I would.  If your fundamentls don't chage, stick with it.  ANother thing I am learning to do is cut my position in half.  If the stock goes up, it will take a bigger gain to recover, but there may be a base for you to buy on.  IF it falls, then you can pick more up at 7.

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#4) On September 09, 2008 at 11:49 PM, awallejr (76.63) wrote:

Well SID does pay a decent dividend so you should have some support.  Personally I prefer NUE, and I have been building a real life position in it with a 3-5 year view.  However, I do find X to be the most interesting because of it's insanely low forward PE of 3.30.

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#5) On September 10, 2008 at 7:59 AM, Varchild2008 (84.38) wrote:

Thanks for the advice...

I agree. NUE and X are both excellent investments.

I like the Spinoff possibility of SID so I think I'll stick with SID.

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