Avoid These 6 Stocks
By Dividendinvestr:The cyclical steel industry is considered as one of the best barometers of manufacturing activity and the health of the overall economy. Recently, strong demand has been reported for the U.S. steel industry, which has seen its shipments rise by 13% in the first quarter of 2012 from the same quarter a year earlier. That robust demand is a result of stronger-than-expected automotive sales and a firm demand for farm equipment and oil and gas drilling equipment. In line with the improvement, some U.S. steelmakers have increased steel prices. Still, despite the better demand and pricing in the U.S., stocks of steelmakers have been crushed since early February (see chart below). This is so because the U.S. sales account for only 6.2% of the global annual market for steel. The rest of the world, especially Europe and China, are getting weaker.At a recent Ira W. Sohn Investment Research Conference,Complete Story »
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