ArcelorMittal (ADR) (MT)

pwacker (96.32) Submitted: 5/08/08 5:53 PM : Start Price: $94.61 MT Score: -17.86

Steel is not publicly traded, thus the steep rise in its price has not been noticed as much as those of exchange traded materials. However, as steel prices have rallied, end-users will more publicly air their pricing concerns, increasing the visibility of the steel sector.

As steel has no substitutes and supply is limited (very few additions to capacity in developed countries, iron ore shipping at full capacity limits further capacity increases), prices will likely continue their upwards trajectory.

MT is trading at a low P/E, yet is the dominant player in this industry. Management has proven excellent at integrating new acquisitions, and finding new synergistic acquisition targets in far flung areas of the globe. Management has a strong track record and can be relied upon to further entrench its market leadership position.

Full disclosure: I own a small number (<25) MT shares.

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