POSCO (ADR) (NYSE:PKX)
The Company manufactures and sells a line of steel products, including hot rolled and cold rolled products, plates, wire rods, silicon steel sheets and stainless steel products.
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mniscule P/OCF
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Best in class steel company will ride on European growth's coattails
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BRK holding
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Great company!
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I expect the dividend to be cut in order to fund its expansion and vertical integration strategy but I like it long term.
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Strong market share with steel in emerging markets, India, and Asia. Exploding auto industry in Korea.
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Valuemoneygreen pitch
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Number 1 steelmaker in the world! Now I don't like these kind of companies for the most part but I will pick companies that are leaders in their industry. This is one of those picks. Currently undervalued in my mind. It has good returns on equity and capital for its industry. It has had a huge amount of growth over the last ten years. Book value has went from just over 30 dollars per share in 2002 to over 106 dollars per share in 2011. This is a pick that I will end and repick from time to time. This is because comanies like this tend to get way over and undervalued from time to time. O and share count has went down since 2002, not a lot but I like the direction.
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The company is trading at a huge discount to fair book value, which stood at $105.21 per share at the end of 1Q1 (a 31% premium to $80 per share). The steel, minerals, and mining industries never perform well when dark economic clouds are overhead, so there is some risk to rushing in now. However, I feel that plenty of risk has been priced into shares already.
Read my full write-up:
http://beta.fool.com/blackngold/2012/06/05/hardhats-required-beyond-these-valuations/5375/
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China's slowing a bit, but it's all relative as GDP growth is still over 8%. Posco has a stellar balance sheet, and very attractive valuations at the moment. I think this is a good entry point.
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Asia will not die
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I like their portfolio of companies: Posco Power, Daewoo International, Posco E & C. However, it's simply too reliant on China, which will end up hurting them in the near term. China will face HUGE headwinds as they try to reform the economy. I like this company in the long term, but not now.
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Expect to see the stock propelled by growing demand, primarily from Asia (China, Japan as it rebuilds and India - new plant sanctioned by the Govt.)
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Long Watchlist
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PKX is a stock I found several years ago. I didn't have the money to pull the trigger, so I had to watch the stock shoot up from a bystander's point of view. Since they had moved to what I considered nose-bleed valuation, they fell off my radar. Fast forward to Spring 2011. Seeing the scope of the disaster in Japan, it seemed to me that rebuilding will require a massive amount of steel. This will make a strong commodity even stronger. I decided to take another look at Posco, and found the stock has returned to a much more logical valuation. I'm giving this an outperform on CAPS, and will be buying with real life money in the near future.
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Asian steel producer should be busy in the near future. Forward P/E of 11. Stock hit again today. good entry here
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One of the best-run steel companies in the world. Located in economic growth area (South Korea). Stock prize volatile because of political tensions on peninsula. Dips offer good entry for investors.
Should thrive when steel market gets stronger.
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#1 steel company in the world
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This Koren situation is exactly the kind of news that you need to build a large position in this company. They are going to suffer significantly in the short term, but overall, they are going to OP. It's too i jumped in a little early.
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