For now, I'm placing a Hold on Worthington Industries' (NYSE: WOR) shares, first recommended with a Buy rating on June 10, 2009 at a price of $15.05.

The steel processing sector was one of those fields that was rudely treated by Wall Street as the U.S. and global recessions took hold, and niche player Worthington did not escape the aforementioned.

I'm Reiterating my Buy rating for United States Steel Corporation (NYSE: X), first recommended on April 15, 2009 at a price of $27.61. Shares are up a cool 59.5% since that time.

The rationale for owning X's shares remains the same: US Steel will likely be a survivor in the consolidating global steel sector with sufficient scale to either produce raw materials and acquire raw material assets.

As we saw in yesterday's earnings preview, AK Steel Holding Corp. (NYSE: AKS) was expected to post a loss for its second quarter, but the good news is that the loss was less than analysts had been expecting to see.

Going into this morning's earnings announcement, analysts had been expecting the company to post a loss of 51 cents per share, but the company was able to show a better than expected loss of just 43 cents per share. While it is good to see the company beat estimates, we still have to keep in mind that during the same period last year the company was able to show earnings of $1.29 per share.

AK Steel Holding Corporation (NYSE: AKS) is due to report earnings tomorrow before the market opens, and the company is expected to post another quarterly loss.

The current recession has been tough on steel makers, and Ohio based AK Steel is no exception. The company has been forced to lower prices and lay off workers in the wake of slumping demand for its steel products.

The market's recent rise has bid-up many growth stocks, but bargains still exist, and Companhia Vale do Rio Doce (NASDAQ: VALE) is one.

Wall Street punished Brazil-based iron ore and pellet producer Companhia Vale do Rio Doce, or simply Vale, as it became clear international demand for steel would decline with the onset of the global recession, taking shares down from the $44-range to about $9.

Nucor (NYSE: NUE - option chain) shares are rising today after iron-ore miner Rio Tinto (NYSE: RTP) agreed to cut its iron ore prices for Japan's Nippon Steel Corp by more than 30%. The steelmakers have already been driven lower as demand for their product has slowed, but now they are less likely to be charged boom-time prices for their raw materials on top of that. If you think that the stock won't fall by too much in the coming months, then now could be a good time to look at a bullish hedged trade on NUE.

NUE opened this morning at $39.44. So far today the stock has hit a low of $39.14 and a high of $41.41. As of 11:35, NUE is trading at $41.25 up 1.16 (2.9%). The chart for NUE looks bearish and S&P gives NUE a negative 2 STARS (out of 5) sell ranking.

The whole world watches China when it comes to the natural resource play. Iron ore and steel companies have watched their share prices swing wildly based on news coming out of the Middle Kingdom in terms of what Chinese mills will be buying and how much they are willing to pay (particularly for the annual iron ore negotiations). Of late, the steel and iron sector has bounced nicely based on rising Chinese demand. Now noises coming out of China's government imply the steel bounce might have been inflated demand numbers. (via FT Alphaville).

You can't talk about the Steelers and the stock market without thinking about U.S. Steel (NYSE: X).

The company's headquarters pierces the Pittsburgh skyline like the Steelers' defense pierces opposing offensive lines.

The U.S. steel industry has been dramatically affected by the global economic slowdown, as demand for autos, buildings and other steel-based products has declined rapidly.

As a result, X is now trading at $30 after hitting a high of almost $200 in June 2008. That's an 85% decline in seven months.

But X has been trying to root out a bottom around $25 for the past three months, and the long-term potential for X is becoming more positive.

And, for what it's worth, X gained 25% in the three months following the Steelers' last Super Bowl victory.

Chris Johnson is a contributor to OptionsZone.com.

It takes nerves of steel to buy stocks in this market. Although much of the carnage has passed and is presumably priced into stocks, there is still risk in this market.

Thus far, investors are avoiding those risks preferring the safety of Treasury securities.

Despite the Federal Reserve doing everything in its power to support the economy and to encourage risk-taking, investors are not taking the bait.

What are they waiting for?

Granted, my own analysis of the market suggests that another round of selling may be right around the corner, creating a real buying opportunity in March or April.

That said, in many instances there is no point in waiting or trying to exactly time the market. Many stocks have absolutely caved to the point that there is little downside remaining.

One such stock is AK Steel (NYSE: AKS).

ArcelorMittal (NYSE: MT - option chain) shares have dropped sharply after the company announced it will cut steel production globally by 30% during the fourth quarter due to declining prices and sluggish growth. MT had previously announced a 15% production cut earlier this year. If you think this stock won't be rising too far in the coming months, then it could be a good time to look at a bearish hedged play on MT or another steel manufacturer.

This morning, MT opened at $26.01. So far today the stock has hit a low of $25.73 and a high of $27.52. As of 12:25, MT is trading at $26.16, down $5.54 (17.5%). The chart for MT looks bearish.

For a bearish hedged play on this stock, I would consider a December bear-call credit spread above the $40 range.

By Alex Kolb, Zack's Investment Research

Nucor Corporation (NYSE: NUE) recently reported record second-quarter earnings of $1.94 per share, beating the consensus estimate by nearly 8% and topping the year-prior $1.14. Consolidated net sales of $7.09 billion also reached a record level, exceeding last year's $4.17 billion. For income, the company is yielding 2.3%, which well ahead of the industry average.

Company Description

Nucor and its affiliates, which make the most steel in America, manufacture steel products. The company's operating facilities are primarily in the U.S. and Canada. Nucor also brokers ferrous and nonferrous metals, pig iron and HBI/DRI; supplies ferro-alloys; and processes ferrous and nonferrous scrap. The company is also North America's largest recycler.

Wachovia (NYSE: WB) was able to get a real star to be its new CEO. Robert Steel was once a vice chairman at Goldman Sachs (NYSE: GS) and is currently Treasury Undersecretary. He joins the big bank just in time to see its fortune get worse, perhaps much worse.

At the time Mr. Steel comes through the door at the firm, it also said it would lose as much as $2.8 million in the second quarter, which is much greater than Wall Street expectations.

According to The Wall Street Journal, "The naming of a new CEO may quiet market speculation that Wachovia is an acquisition target."

The question is why anyone would want the Wachovia job. The company's shares are down more than 70% in the last year. The drop is even greater than Citigroup's (NYSE:C).

Mr. Steel is likely to cause an uprising among his shareholders within his first few weeks on the job. Wachovia will probably need to raise more money to shore up its capital base. Its market cap is down to $28 billion. If the firm has to raise $5 billion, the stock could fall from its current price of $14.29 to below $11. A worsening housing market and economy will probably cause even more write-offs as the year goes on.

Steel should have stayed in Washington. The chances that things will get better at Wachovia soon are slim and none.

Douglas A. McIntyre is an editor at 247wallst.com.

Since 1975, Lakshmi Mittal has turned ArcelorMittal (NYSE: MT) into a global steel powerhouse. As a result, he's worth in excess of $45 billion. Actually, as an indication of his power, Mittal is now a board member of Goldman Sachs Group, Inc. (NYSE: GS).

And, no doubt, his dealmaking is likely to continue. In fact, there are reports that ArcelorMittal will make a play for Rio Tinto Group, which is the #2 ore producer in the world. The company is currently ensnared in a hostile takeover from BHP Billiton Ltd. (NYSE: BHP). Basically, ArcelorMittal may make an equity investment, which could exceed $10 billion.

Why? ArcelorMittal needs to find ways to stabilize its raw material supplies. After all, with pricing pressures, it's important to contain things.

Then again, this may ultimately be mostly noise -- to get traders excited. But, in light of ArcelorMittal's global power, investors will definitely listen.

Tom Taulli is the author of various books, including The Complete M&A Handbook and The Edgar Online Guide to Decoding Financial Statements. He also operates MergerBook.com.

Platinum Equity focuses primarily on buying non-core assets from major companies. It's complex stuff but the firm has built a strong system to facilitate deals, such as with transition plans, long-term strategies, HR and so on.

And it's paying off. This week Platinum Equity sold PNA Group Holding to Reliance Steel & Aluminum Co. (NYSE: RS) for about $1.1 billion.

Keep in mind that Platinum picked up PNA in 2006 for a cheap $17.5 million. What's more, the firm was able to recap the company and take out a special dividend for $181 million last year.

Readers of this space know that the investment bias is toward large-cap companies with demonstrated business models and who have a competitive advantage in established markets, preferably with a favorable global trend as a support. And with the above in mind, Nucor Steel is worth a review.

Nucor Corporation (NYSE: NUE) produces about 20 million tons of steel annually, and also is a major recycler of scrap metal.

In general, analysts expect NUE's revenue to increase 10-12% in FY 2008, aided by the Harris Steel acquisition and other acquisitions. Analysts also see strong demand for beams and bars, on continued non-residential construction growth.