BSL - Bluescope Steel

[GreatPig]

Re: Bluescope Steel!

BSL on its way up again?

A decent break above $8 might see me in again.

Cheers,
GP

 

[Investor]

Re: Bluescope Steel!

A $200 million on-market buyback has been taking place.

Merrills is recommending investors buy BlueScope Steel (BSL) for recovery in HRC prices and organic Asian growth.

The analysts believe their forecast return to positive news flow in the global perspective will specifically benefit producers of flat product. All of BlueScope’s hot metal output is flat product.

The analysts expect BlueScope’s earnings growth and share price performance over the next 6-12 months to be driven by China’s deficit of
flat product and “higher for longer” HRC prices.

The rollout of the downstream growth strategy also appears to be accelerating, which will improve the stock’s long term value.

Moreover, Merrills sees BlueScope as the company most likely to be acquired by one of the global majors. Not surprisingly, the company represents Merrills preferred steel exposure.

 

[Julia]

Bluescope Steel

Would be interested to hear from anyone holding BSL re thoughts about the future. Recent comments have been fairly negative re steel prices having definiely peaked. Are you holding or selling?

Julia

 

[excalibur]

Re: Bluescope Steel

Would be interested to hear from anyone holding BSL re thoughts about the future. Recent comments have been fairly negative re steel prices having definiely peaked. Are you holding or selling?

Julia

Hi Julia,

It has been speculated in Europe that the price of steel should still sink a bit. Many companies existing storage is filled up, lowering the request and consequentially the price will still fall. I have already sold similar stocks like Thyssen-Krupp in Germany...and was right.
I am not going to give you any advice because I am not allowed to.
If you have lost confidence in the stock then you must be consequent.
Cheers

 

[DTM]

Re: Bluescope Steel

Hi Julia,

It has been speculated in Europe that the price of steel should still sink a bit. Many companies existing storage is filled up, lowering the request and consequentially the price will still fall. I have already sold similar stocks like Thyssen-Krupp in Germany...and was right.
I am not going to give you any advice because I am not allowed to.
If you have lost confidence in the stock then you must be consequent.
Cheers

I agree with you. BSL has been on my radar as one to fall.

 

[RichKid]

Re: Bluescope Steel! BSL

Recent article on the topic, not sure how much BSL is exposed to weakening markets.

Steel Prices Under Severe Pressure
July 05 2005 - Australasian Investment Review – (AIR)

The latest information from steel researcher MEPS indicates a torrid time for steel prices. In the flat products category, substantial price cuts were put in place for June in China and Japan for all strip mill products, and values are under severe negative pressure in South Korea and Taiwan, MEPS reports.

A plethora of commercial grade plate across the region is keeping prices weak. MEPS believes prices in South Korea and Taiwan (which have not decreased) will be pushed lower in the short term.

A common theme running through the flat products market in Asia is pertinent in other parts of the world, says MEPS. Mill order books are low because of over stocking by customers earlier in the year. Mill inventories are too high and, therefore, selling prices are being cut to generate orders.

MEPS believes the downturn in the market has just commenced, and believes the outlook for the next ten months is poor. Output has been running at levels well above real consumption for many months. Production curbs are anticipated in the near future but will take time to become effective.

MEPS envisages a continuous price slide up to March next year. Opportunities for exporting to the West are not good because prices are sliding in both the major consuming regions.
www.aireview.com

 

[Dan_]

Re: Bluescope Steel! BSL

Has anyone been watching this stock lately?

slowly working it's way up and up and i don't understand why? Anyone care to provide their thoughts?

Sorry I would post a chart but yet to figure it out

 

[dutchie]

Re: Bluescope Steel! BSL

I think it was bagged previously because of the lower price of steel. Then it was mentioned that it still had a good cashflow and I would assume it was underpriced.
(Could find resistance at 8.86)

 

[Julia]

Re: Bluescope Steel! BSL

Macquarie have today rated BSL as "Outperform" with a target price of $10.50.


Julia

 

[Battman64]

Re: Bluescope Steel! BSL

This stock is looking like a short at $9.10
Already had seven days up.
Overbought at present.
I have been wrong many times

 

[markrmau]

Re: Bluescope Steel! BSL

I shorted today at 9.38

Anyone else short? Tight stops on this one though.

 

[excalibur]

Re: Bluescope Steel! BSL

I haven`t any stocks but I think that was a wise decision.
Keep an eye on it although, the steel industry has been a bit too quiet in the past few months. I might jump in as soon as she drops to 8.

 

[markrmau]

Re: Bluescope Steel! BSL

Interesting. Normally, when you put a trade into the cfd provider to buy / sell, the hedging order appears in the depth.

However, when I put my cover buy order in for BSL, no such order appears.

Maybe the hedging partner doesn't want the BSL shares back?

 

[mit]

Re: Bluescope Steel! BSL

They could have matched the order internally. Obviously not CMC I've never seen my order go into the depth. Unless it is because I am such a small player :


Hope you are all wrong as I am long BSL at the moment. It's getting close to announcement time, so it could go either way depending on performance against expectations.
MIT

 

[DTM]

Re: Bluescope Steel! BSL

Hope you are all wrong as I am long BSL at the moment. It's getting close to announcement time, so it could go either way depending on performance against expectations.
MIT

There's been too much strong buying in the last few weeks to make me think that people are buying it for the sake of it. I'm sure someone knows what the real story is.

Tipping that it could be a bumper year.

 

[markrmau]

Re: Bluescope Steel! BSL

Pretty strong reversal today. Still below my sell price, but will cover Monday.

 

[JeffB]

Re: Bluescope Steel! BSL

No comments on this thread lately, are we still bullish on BSL ? - last sale 9.46. Alot of deals being made in China and BHP is channeling all it's steel requirements their way (obviously).

 

[mit]

Re: Bluescope Steel! BSL

9.47 now. I'm long but this is from running a mechanical trading system rather than for any other tangible reason.

Seems to be bouncing around in a 30c range over the last week or so. People might be waiting for the profit announcement which should be around the 23rd or this month before it breaks out of this range. Today is the highest over this period but it is not really a decisive break yet.

MIT

 

[Julia]

BSL Bluescope Steel

Does anyone have any comments where BSL is going following recent gains?
Broker today suggested that it would be fully valued at $10.00.

Julia

 

[GreatPig]

Re: Bluescope Steel! BSL

No idea, but $10 is around it's all-time high back in February.

Cheers,
GP