ArcelorMittal (ADR) (NYSE:MT)

Improvement in manufacturing and home buidling, leader in the industry. Good value/income play.

The analyis presented by various Motley Fool articles, as well as research I conducted independently, offers a compelling case for ArcelorMittal. Jolted by the stock market especially from July 2011 until late November, MT's stock price decreased by about 50%. However, it remains a strong company. MT is actually earning money, whereas some of its competitors are losing money. MT is working towards becoming a vertically-integrated company--it is not only the world's largest steel manufacturer, but also the world's fourth largest iron-ore manufacturer--which will give MT greater pricing power and more control over its revenues and expenses. Its size gives it the scale and scope to successfully compete on a global scale. Its CEO, Lakshmi Mittal, owns approximately 41% of company shares, so he has a clear interest in ensuring the company's success. Several other statistics Motley Fool writers refer to suggest that MT has the "signposts of solid financial performance": MT had an average return on capital of 14% in the decade ending in 2010, in only one year in the past decade has MT experienced an operating or net loss for the full year, the company's debt-to-equity ratio at the end of 3Q 2011 was 46% compared with that of 704% in 2001, its EBITDA-to-interest expense ration was 6.2 compared with that of 0.2 in 2001. Its price-to-average-10-year-earnings ratio (using 10 years to smooth out the gyrations of a cyclical steel industry) is 7.3. Its dividend yield (of about 3.3%) adds a nice layer of frosting to the cake.

There are certainly many other factors to consider, many of which I have little knowledge of (refer, for instance, to a January 12, 2012 MF article discussing MT's intangible assets ratio and tangible book value). However, based upon this preliminary analysis, it appears as if MT is currently undervalued by Mr. Market and well-positioned for an eventual increase in its stock price. Factors like domestic demand for automobiles and the sovereign debt crisis in Europe might be short-term complicating factors, but I think MT is well-equipped to weather these challenges and maintain its status as a strong, indeed preeminent, vertically-integrated company.

premier steel manufacturer at a great valuation, low price and a dividend. The need for steel in the developing world and infrastructure needs in countries like the US will continue to fuel the demand for steel and other basic materials.

Attractive FUNdamentals, decent yield. PB ~.5 screams value. Once the economy starts taking a turn toward improvement, I think this one runs to ~$30. Going long…

undervalued because of global economy which is exactly right time to buy a company with good fundamentals and mgmt - good financials, debt, p/e and div - CB 19 - Tgt 30s

Paul Chi article.

Based on significant data, there will be a need to spend $40 Trillion on infrastructure on a Global basis over the next 15-20 years. China and India will be big drivers of this growth. $2B on infrastructure spending in the US over the next 5-7 years will need to be done as well. Steel is an excellent play and this is one of the best positioned.

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(Excerpt from a draft CAPScall article with estimated publication date of 29-DEC-2011)

Leader in the global steel industry. Trading at about half tangible book value. Nice dividend. Positioned to clean house when the steel market returns.

U.S. infrastructure is deteriorating and emerging markets infrastructure is, well, emerging. Can't go wrong here at these prices. Great dividend yield too.

No matter what direction the global economy may go in the next few years, we'll always need natural resources. Steel has always been an essential part of our entire economy, whether we like it or not. Think of anything and there's a lot of metal involved, whether it is the product itself, the production machinery or the main transport to get the product to our customers, the amount of steel needed is huge. And always will be.

Sooner or later Arcelor will go up again.

Leadership Position & Skilled Management.

P/E ~5, P/B ~0.4, DIv ~4%, Diiv/E ~ 15%. Overhit by events in Europe.

Because it is cheap. Really cheap.

just waiting for this one to pop

Undervalued by heaps and well Run

undervalued

Target $31. this one seems a smart buy at this point seems like a solid company with upward potential.

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