"I've never been a big fan of deep cyclical industries, such as autos, chemicals, and steel; the companies tend to have violent swings in their results as a result of economic cycles," observes Chuck Carlson.

However, says the editor of The DRIP Investor, "Every so often I'm willing to make an exception for a well-run cyclical company. Arcelor Mittal (NYSE: MT) is such a company." Here is his review.

"Arcelor Mittal is the world's number one steel company, with 310,000 employees in more than 60 countries. It has demonstrated the ability to navigate the often-difficult waters of the steel industry.

"For investors who are looking for stocks that should hold up in an inflationary environment, Mittal should be of interest. The company has pricing power -- for example, the company just announced a $100-per-ton price increase on its carbon and high-strength low-alloy plate steel products for all North American orders, effective May 4.

"The stock has held up quite well throughout the market's volatility in recent months. While the stock will likely exhibit above-average volatility, these shares give portfolios both international exposure -- the company is headquartered in Luxembourg -- and cyclical exposure.

"It leads in all major global steel markets, including automotive, construction, household appliances, and packaging. Its industrial presence in Europe, Asia, Africa, and America gives the company exposure to all the key steel markets, from emerging to mature.

"Acquisitions have been a major part of the firm's growth strategy. A total of 35 transactions were announced in 2007, including deals that will expand the company's presence in such emerging markets as Brazil, China, Mexico, and Poland.

"For 2007, the company posted revenues of more than $105 billion (U.S.$), up nearly 19% from the year earlier. Net income for the year was $10.4 billion, up 30% from the year-earlier period. For 2008, the consensus earnings estimate is $8.04 per share, up from $7.40 in 2007. The stock trades at less than 10 times the 2008 estimate.

"To be sure, concerns about a global economic slowdown will appear periodically, causing some profit taking in these shares. However, I think the growth in emerging economies has legs and should be a solid long-term driver for Mittal's bottom line.

"Investors could nibble at current prices, with price breaks below $70 representing an opportunity for more aggressive buying. Also, note that Arcelor Mittal offers a direct-purchase plan whereby any U.S. investor may buy shares directly, the first share and every share. Minimum initial investment is $200. Subsequent investments may be as little as $50."

Each day, Steven Halpern's TheStockAdvisors.com offers the latest market commentary and favorite investment ideas from the nation's leading financial newsletter advisors.