Cramer's Steel Stocks

Description:

From 7-9-07

All steel companies are not created equal. Schnitzer Steel (SCHN), for example, dominates scrap steel in the western half of the U.S. This morning it announced some super earnings, much, much better than expected, a true blowout: $1.47 vs. $1.07. That's the kind of earnings surprise that should be listed if you Google "earnings surprise." It's a classic example where the estimates presumed really bad numbers.

When we saw the Nucor collapse in early June, people freaked and sent all steel stocks down. Nucor uses scrap steel as part of its minimill strategy.

But now I believe the market will hear the Schnitzer earnings conference call and extrapolate that to the whole group and take all its members up.

Adding fuel to that fire will be the notion that Nucor previously cut estimates and then blew away the numbers when the business turned up right after the announcement. I believe that traders will use the Schnitzer license to say that could be happening again.

Watch this group. It could be back.

Most Viewed Portfolios

View All

Articles

5 Stocks Insiders Love Right Now

07.30.14 | 11:35 AM

DELAFIELD, Wis. (Stockpickr) -- Corporate insiders sell their own companies' stock for a number of reasons. They might need the cash for a big pe...

Dividend Preview: 5 Stocks Ready to Pay You More

07.30.14 | 10:47 AM

BALTIMORE (Stockpickr) -- The S&P 500 may be pushing up against new all-time highs this month, but whatever you do, don't forget about dividends. ...

More Articles
blog comments powered by Disqus
brokerage partners
connect with Stockpickr
Fan us on FaceBook
Follow us on Twitter