Why United States Steel Corp is a buy from a trader's perspective: For the first time in 8 years, we have a president that has made U.S. manufactured steel a priority on his list of making American manufacturing great again. Whether it be by Tariffs, limitations on steel imports, special tax breaks, or the initiation of a Section 232 investigation by the Secretary of Commerce, there has never been such an underlying trading bid for steel in my memory. The push to help U.S. steel manufactures will be strong for the next 4 years and maybe 8. If this isn't good for the steel trade then I don't know what is. China's exports of steel to the United States has already dropped from 15% to 2.5% and it will take some time for that decrease to make its way to the balance sheets in a positive way. Trump will not back down on this issue because it's personal to him and he has already put himself out there...from the Presidential Address where he mentioned that government construction will only use American steel to his frequent comments regarding how the steel industry has languished due to the dumping of cheap China steel and Canadian steel on the U.S. U.S. Steel (X) has the presidential wind behind its back and could see a stock price in excess of $50 per share as Mario Longhi continues to reduce debt and revitalize the asset base to improve profitability moving forward. Tariffs of 20% are not necessary to see a $50 price target in US Steel, and I believe tariffs of 10% coupled with import restrictions are more likely. Don't let media reports sway you away from the reality of the steel industry's renaissance in the United States. I've been a trader for almost 20 years and I've seen it all. U.S. Steel (X) is a strong buy after the huge earnings miss on April 25, 2017. It will most likely be the last time for decades to come that you will be able to to get into US Steel (X) in the $20s. I post as AZ-Investor on other message boards in case you've been following me.
