BloggingStocks http://www.bloggingstocks.com BloggingStocks http://www.blogsmithmedia.com/http://www.bloggingstocks.com/media/feedlogo.gif BloggingStocks http://www.bloggingstocks.com en-us Copyright 2012 Weblogs, Inc. The contents of this feed are available for non-commercial use only. Blogsmith http://www.blogsmith.com/<![CDATA[A Relationship Between Giants: Cliffs Natural Resources and ArcelorMittal]]>http://www.bloggingstocks.com/2011/03/15/a-relationship-between-giants-cliffs-natural-resources-and-arcel/http://www.bloggingstocks.com/2011/03/15/a-relationship-between-giants-cliffs-natural-resources-and-arcel/http://www.bloggingstocks.com/2011/03/15/a-relationship-between-giants-cliffs-natural-resources-and-arcel/#commentsFiled under:

Cliffs Natural Resources (CLF) holds the distinction of being the largest producer of iron ore pellets in North America. It is also a major supplier of direct-shipping lump and fines iron ore out of Australia and is also a significant producer of metallurgical coal. It competes with other international mining and natural resources companies like Vale (VALE), BHP Billiton (BHP) and the Rio Tinto (RIO) group.

We maintain a $103 price estimate for Cliffs Natural Resources stock, roughly 8% ahead of market price.

Continue reading A Relationship Between Giants: Cliffs Natural Resources and ArcelorMittal

A Relationship Between Giants: Cliffs Natural Resources and ArcelorMittal originally appeared on BloggingStocks on Tue, 15 Mar 2011 14:30:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>ArecelorMittalclfCliffs Natural Resourcesinthenewsiron ore pelletsmtsteelTue, 15 Mar 2011 14:30:00 EST<![CDATA[ArcelorMittal Results Suggest Slow and Steady Recovery in Steel Industry]]>http://www.bloggingstocks.com/2011/02/28/arcelormittal-results-suggest-slow-and-steady-recovery-in-steel/http://www.bloggingstocks.com/2011/02/28/arcelormittal-results-suggest-slow-and-steady-recovery-in-steel/http://www.bloggingstocks.com/2011/02/28/arcelormittal-results-suggest-slow-and-steady-recovery-in-steel/#commentsFiled under: ,

ArcelorMittal (MT) is currently the largest steel manufacturer in the world, formed by the merger of two steel giants, Arcelor and Mittal in 2006. The company competes with other international Steel giants like BaoSteel, Posco, Nippon Steel and ThyssenKrupp.

Our price estimate for Arcelor Mittal stands at $40.67, roughly 10% above market price.

Continue reading ArcelorMittal Results Suggest Slow and Steady Recovery in Steel Industry

ArcelorMittal Results Suggest Slow and Steady Recovery in Steel Industry originally appeared on BloggingStocks on Mon, 28 Feb 2011 17:00:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>ArcelorMittalcommoditiessteelMon, 28 Feb 2011 17:00:00 EST<![CDATA[ArcelorMittal Results Suggest Slow and Steady Recovery in Steel Industry]]>http://www.bloggingstocks.com/2011/02/24/arcelormittal-results-suggest-slow-and-steady-recovery-in-steel/http://www.bloggingstocks.com/2011/02/24/arcelormittal-results-suggest-slow-and-steady-recovery-in-steel/http://www.bloggingstocks.com/2011/02/24/arcelormittal-results-suggest-slow-and-steady-recovery-in-steel/#commentsFiled under: ,

ArcelorMittal logoArcelorMittal (MT) is currently the largest steel manufacturer in the world, formed by the merger of two steel giants, Arcelor and Mittal in 2006. The company competes with other international Steel giants like BaoSteel, Posco, Nippon Steel and ThyssenKrupp.

Our price estimate for Arcelor Mittal stands at $40.67, roughly 10% above market price.

Continue reading ArcelorMittal Results Suggest Slow and Steady Recovery in Steel Industry

ArcelorMittal Results Suggest Slow and Steady Recovery in Steel Industry originally appeared on BloggingStocks on Thu, 24 Feb 2011 15:00:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>ArcelorMittalMTsteelThu, 24 Feb 2011 15:00:00 EST<![CDATA[Chasing Value: Buy Nucor Quality on Sale]]>http://www.bloggingstocks.com/2010/11/03/chasing-value-buy-nucor-quality-on-sale/http://www.bloggingstocks.com/2010/11/03/chasing-value-buy-nucor-quality-on-sale/http://www.bloggingstocks.com/2010/11/03/chasing-value-buy-nucor-quality-on-sale/#commentsFiled under: , , , ,

Nucor (NUE) logoEvery day I marvel at all the silly things that happen in the marketplace, the missed opportunities and the overlooked bargains. Mini-mill steel company Nucor Corp. (NUE) is certainly one of them.

I understand that the construction industry is in the dumps and the auto industry has barely come back to life. There is no question that Nucor has fallen on tough times. However, that is what creates the investment opportunity. If you want to make a lot of money, you must find high-quality companies during their business lulls and not be afraid to put your money to work.

Continue reading Chasing Value: Buy Nucor Quality on Sale

Chasing Value: Buy Nucor Quality on Sale originally appeared on BloggingStocks on Wed, 03 Nov 2010 12:00:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>ChasingValuecheap stocksdividend investingdividend stocksDividendsfeaturedNucorNucor Corp NUENUEsteelwinning strategiesWed, 03 Nov 2010 12:00:00 EST<![CDATA[Consider U.S. Steel, Because Steel Is Back in Style]]>http://www.bloggingstocks.com/2010/04/13/consider-u-s-steel-because-steel-is-back-in-style/http://www.bloggingstocks.com/2010/04/13/consider-u-s-steel-because-steel-is-back-in-style/http://www.bloggingstocks.com/2010/04/13/consider-u-s-steel-because-steel-is-back-in-style/#commentsFiled under: ,

It appears the reviews of U.S. Steel (X), first discussed here on April 15, 2009 at a price of $27.61, just can't keep up with the steelmaker's performance.

Originally expected earn only a slight profit in 2010, look for U.S. Steel to return solidly to the profit side of the ledger, aided by a likely 40-50% surge in revenue this year.

The reason? The U.S./global economic recoveries, which are driving large increases in steel demand. Durable goods and big ticket items like washers, driers, and kitchen ranges require steel, and their bullish trend bodes well for X.

Continue reading Consider U.S. Steel, Because Steel Is Back in Style

Consider U.S. Steel, Because Steel Is Back in Style originally appeared on BloggingStocks on Tue, 13 Apr 2010 17:40:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>appliancesglobal economysteelus economyTue, 13 Apr 2010 17:40:00 EST<![CDATA[New Iron Ore Pricing Scheme Should Be Good for American Steel]]>http://www.bloggingstocks.com/2010/04/04/new-iron-ore-pricing-scheme-should-be-good-for-american-steel/http://www.bloggingstocks.com/2010/04/04/new-iron-ore-pricing-scheme-should-be-good-for-american-steel/http://www.bloggingstocks.com/2010/04/04/new-iron-ore-pricing-scheme-should-be-good-for-american-steel/#commentsFiled under: , , , , ,

A new method of setting the price on iron ore for export is upsetting Chinese and European steel makers and auto manufacturers, but that same pricing scheme is most likely going to benefit U.S. steelmakers such as AK Steel (AKS), Nucor (NUE) and U.S. Steel (X).

In the past, iron ore pricing was largely set on an annual basis, with the first negotiated ore contracts of the season setting the price for the duration of that season. However, this year, the three largest iron ore miners, BHP Billiton (BHP), Rio Tinto (RTP) and Vale SA (VALE), have decided that they will seek quarterly renegotiation of ore contract pricing. This will allow those companies to take better advantage of increases in iron ore demand and spikes in spot prices.

Continue reading New Iron Ore Pricing Scheme Should Be Good for American Steel

New Iron Ore Pricing Scheme Should Be Good for American Steel originally appeared on BloggingStocks on Sun, 04 Apr 2010 14:40:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>AK SteelAKSBHPCLFCliffs Natural Resourcesexportinthenewsiron oreNucorNUEpricingRio TintoRTPshippingsteelUnited States SteelValeSun, 04 Apr 2010 14:40:00 EST<![CDATA[ArcelorMittal Downgraded to Hold from Buy]]>http://www.bloggingstocks.com/2010/03/11/arcelormittal-downgraded-to-hold-from-buy/http://www.bloggingstocks.com/2010/03/11/arcelormittal-downgraded-to-hold-from-buy/http://www.bloggingstocks.com/2010/03/11/arcelormittal-downgraded-to-hold-from-buy/#commentsFiled under:

ArcelorMittal (MT) was downgraded to hold from buy at ING, which noted that "major price increases imminent for iron ore and coking coal, we believe the steel industry may suffer from cost increases on the order of 35%, as new contract prices are set."

ING believes steel prices will rise 10% to 20%, which would then put the industry under pressure. If this scenario were to come to fruition, MT's costs could increase by roughly 15%. Although these increases are less than MT's peers, ING prefers putting money in "diversified mining shares."

Continue reading ArcelorMittal Downgraded to Hold from Buy

ArcelorMittal Downgraded to Hold from Buy originally appeared on BloggingStocks on Thu, 11 Mar 2010 10:30:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>arcelormittalinginthenewsmetalsmtsteelThu, 11 Mar 2010 10:30:00 EST<![CDATA[Worthington Industries: Upgraded to a Buy]]>http://www.bloggingstocks.com/2010/01/18/worthington-industries-upgraded-to-buy/http://www.bloggingstocks.com/2010/01/18/worthington-industries-upgraded-to-buy/http://www.bloggingstocks.com/2010/01/18/worthington-industries-upgraded-to-buy/#commentsFiled under:

I've upgraded steel processor Worthington Industries (WOR) to buy from the hold rating issued on October 9, 2009, at a price of $13.65. Here's why:

Worthington's stock has broken the uptrend line at about $12, and eliminated the bear hug concern from about three months ago. WOR was first recommended with a buy rating on June 10, 2009, at a price of $15.05.

Continue reading Worthington Industries: Upgraded to a Buy

Worthington Industries: Upgraded to a Buy originally appeared on BloggingStocks on Mon, 18 Jan 2010 18:00:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>steelworthington industriesMon, 18 Jan 2010 18:00:00 EST<![CDATA[Worthington Industries: Hold shares]]>http://www.bloggingstocks.com/2009/10/01/worthington-industries-hold-shares/http://www.bloggingstocks.com/2009/10/01/worthington-industries-hold-shares/http://www.bloggingstocks.com/2009/10/01/worthington-industries-hold-shares/#commentsWorthington 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.

Continue reading Worthington Industries: Hold shares

Worthington Industries: Hold shares originally appeared on BloggingStocks on Thu, 01 Oct 2009 17:20:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>steelsteel processingSteelProcessingWORWorthington IndustriesThu, 01 Oct 2009 17:20:00 EST<![CDATA[US Steel: A bright future, but it's not a play for squeamish investors]]>http://www.bloggingstocks.com/2009/08/12/us-steel-a-bright-future-but-it-s-not-a-play-for-squeamish-inv/http://www.bloggingstocks.com/2009/08/12/us-steel-a-bright-future-but-it-s-not-a-play-for-squeamish-inv/http://www.bloggingstocks.com/2009/08/12/us-steel-a-bright-future-but-it-s-not-a-play-for-squeamish-inv/#commentsFiled under: ,

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.

Continue reading US Steel: A bright future, but it's not a play for squeamish investors

US Steel: A bright future, but it's not a play for squeamish investors originally appeared on BloggingStocks on Wed, 12 Aug 2009 17:00:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>raw materialsRawMaterialssteelWed, 12 Aug 2009 17:00:00 EST<![CDATA[AK Steel posts better-than-expected earnings]]>http://www.bloggingstocks.com/2009/07/21/ak-steel-posts-better-than-expected-earnings/http://www.bloggingstocks.com/2009/07/21/ak-steel-posts-better-than-expected-earnings/http://www.bloggingstocks.com/2009/07/21/ak-steel-posts-better-than-expected-earnings/#commentsFiled under: ,

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.

Continue reading AK Steel posts better-than-expected earnings

AK Steel posts better-than-expected earnings originally appeared on BloggingStocks on Tue, 21 Jul 2009 12:40:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>AK SteelAKSearningsforecastsgood newsinthenewssteelsteel makersTue, 21 Jul 2009 12:40:00 EST<![CDATA[AK Steel earnings preview]]>http://www.bloggingstocks.com/2009/07/20/ak-steel-earnings-preview/http://www.bloggingstocks.com/2009/07/20/ak-steel-earnings-preview/http://www.bloggingstocks.com/2009/07/20/ak-steel-earnings-preview/#commentsFiled under: , , , ,

AK Steel Earnings PreviewAK 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.

Continue reading AK Steel earnings preview

AK Steel earnings preview originally appeared on BloggingStocks on Mon, 20 Jul 2009 17:30:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>AK SteelAKSAkSteelauto demandAutoDemandautomakersconsumer confidenceConsumerConfidenceDetroitearningsearnings previewEarningsPrevieweconomic crisisEconomicCrisisOhiorecessionsteelsteel makersSteelMakersMon, 20 Jul 2009 17:30:00 EST<![CDATA[Vale: A miner for a bargain]]>http://www.bloggingstocks.com/2009/05/27/vale-a-miner-for-a-bargain/http://www.bloggingstocks.com/2009/05/27/vale-a-miner-for-a-bargain/http://www.bloggingstocks.com/2009/05/27/vale-a-miner-for-a-bargain/#commentsFiled under: ,

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.

Continue reading Vale: A miner for a bargain

Vale: A miner for a bargain originally appeared on BloggingStocks on Wed, 27 May 2009 09:20:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>Companhia Vale do Rio DoceinthenewssteelVALEWed, 27 May 2009 09:20:00 EST<![CDATA[Nucor (NUE) rises on ore price cut]]>http://www.bloggingstocks.com/2009/05/26/nucor-nue-rises-on-ore-price-cut/http://www.bloggingstocks.com/2009/05/26/nucor-nue-rises-on-ore-price-cut/http://www.bloggingstocks.com/2009/05/26/nucor-nue-rises-on-ore-price-cut/#commentsFiled under: , , , , , , ,

NUE logoNucor (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.

Continue reading Nucor (NUE) rises on ore price cut

Nucor (NUE) rises on ore price cut originally appeared on BloggingStocks on Tue, 26 May 2009 12:30:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>Investors ObserverInvestorsObserverironNucorNUEoptionsRio TintoRioTintoRTPsteelTue, 26 May 2009 12:30:00 EST<![CDATA[China's steel story: government slowing down demand]]>http://www.bloggingstocks.com/2009/05/14/chinas-steel-story-government-slowing-down-demand/http://www.bloggingstocks.com/2009/05/14/chinas-steel-story-government-slowing-down-demand/http://www.bloggingstocks.com/2009/05/14/chinas-steel-story-government-slowing-down-demand/#commentsFiled under: , ,

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).

Continue reading China's steel story: government slowing down demand

China's steel story: government slowing down demand originally appeared on BloggingStocks on Thu, 14 May 2009 18:20:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>chinaCompanhia Vale do Rio DoceCompanhiaValeDoRioDoceiron oreIronOresteelThu, 14 May 2009 18:20:00 EST<![CDATA[Five winning Super Bowl trades: I. Buy U.S. Steel (X)]]>http://www.bloggingstocks.com/2009/01/31/five-winning-super-bowl-trades-i-buy-u-s-steel-x/http://www.bloggingstocks.com/2009/01/31/five-winning-super-bowl-trades-i-buy-u-s-steel-x/http://www.bloggingstocks.com/2009/01/31/five-winning-super-bowl-trades-i-buy-u-s-steel-x/#commentsFiled under: ,

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.

Five winning Super Bowl trades: I. Buy U.S. Steel (X) originally appeared on BloggingStocks on Sat, 31 Jan 2009 10:00:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>steelsteelerssuper bowlsuper bowl tradesSuperBowlSuperBowlTradesSat, 31 Jan 2009 10:00:00 EST<![CDATA[AK Steel (AKS): An easy double]]>http://www.bloggingstocks.com/2008/12/31/ak-steel-aks-an-easy-double/http://www.bloggingstocks.com/2008/12/31/ak-steel-aks-an-easy-double/http://www.bloggingstocks.com/2008/12/31/ak-steel-aks-an-easy-double/#commentsFiled under: , ,

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).

Continue reading AK Steel (AKS): An easy double

AK Steel (AKS): An easy double originally appeared on BloggingStocks on Wed, 31 Dec 2008 12:30:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>ak steelak steel holdingaksAkSteelAkSteelHoldingdlugoschsteelWed, 31 Dec 2008 12:30:00 EST<![CDATA[ArcelorMittal (MT) doubles production cut to 30%]]>http://www.bloggingstocks.com/2008/11/05/arcelormittal-mt-doubles-production-cut-to-30/http://www.bloggingstocks.com/2008/11/05/arcelormittal-mt-doubles-production-cut-to-30/http://www.bloggingstocks.com/2008/11/05/arcelormittal-mt-doubles-production-cut-to-30/#commentsFiled under: , , , ,

MT logoArcelorMittal (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.

Continue reading ArcelorMittal (MT) doubles production cut to 30%

ArcelorMittal (MT) doubles production cut to 30% originally appeared on BloggingStocks on Wed, 05 Nov 2008 13:45:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>110508arcelormittalinthenewsinvestors observerInvestorsObserverMToptionssteelWed, 05 Nov 2008 13:45:00 EST<![CDATA[Nucor beats earnings estimates]]>http://www.bloggingstocks.com/2008/07/29/nucor-beats-earnings-estimates/http://www.bloggingstocks.com/2008/07/29/nucor-beats-earnings-estimates/http://www.bloggingstocks.com/2008/07/29/nucor-beats-earnings-estimates/#commentsFiled under:

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.

Continue reading Nucor beats earnings estimates

Nucor beats earnings estimates originally appeared on BloggingStocks on Tue, 29 Jul 2008 16:55:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>nucorsteelTue, 29 Jul 2008 16:55:00 EST<![CDATA[Wachovia (WB): New CEO, old problems]]>http://www.bloggingstocks.com/2008/07/10/wachovia-wb-new-ceo-old-problems/http://www.bloggingstocks.com/2008/07/10/wachovia-wb-new-ceo-old-problems/http://www.bloggingstocks.com/2008/07/10/wachovia-wb-new-ceo-old-problems/#commentsFiled under: , , , ,

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.

Wachovia (WB): New CEO, old problems originally appeared on BloggingStocks on Thu, 10 Jul 2008 03:59:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>CinthenewssteelWBThu, 10 Jul 2008 03:59:00 EST