Steel ETF (SLX)

[LCrigger]

Steel Yourself For Earnings Season
By Brad Zigler

Zigler discusses the earnings reports for steel and agricultural companies coming out later this week, and what they could mean for SLX, MOO and both industries as a whole.

From Hard Assets Investor (excerpt):

"It's going to be a busy week for earnings watchers. Especially those tracking the agricultural and steel sectors. Iowa's Terra Industries Inc. (NYSE: TRA), a producer of fertilizers and agrichemicals, is expected to announce first-quarter earnings of 43 cents a share Tuesday – about half its year-ago profit.

Analysts have also forecast a 75-cents-per-share loss for Ohio-based AK Steel Holding Corp. (NYSE: AKS) to be announced that same day, a negative 191% year-over-year turnaround.

On Wednesday, Steel Dynamics, Inc. (Nasdaq: STLD)'s numbers are due, followed by a slate of Thursday releases by Potash Corp. of Saskatchewan (NYSE: POT), Bunge Ltd. (NYSE: BG), Reliance Steel & Aluminum Co. (NYSE: RS) and Nucor Corp. (NYSE: NUE).

The late-week reports are expected to show an average 93% decline in year-over-year results, with the steel companies getting the worst of it. The deterioration forecast for the four steel companies noted averages 126%; aggregate earnings for the three agribusinesses are expected to drop 62%.

Year-over-year stock performance pretty much mirrors the earnings disparity. Since April 2008, the Market Vectors Steel ETF (NYSE Arca: SLX), an exchange-traded portfolio tracking the NYSE Arca Steel Index, has swooned 63%; the 44 issues proxied by the Market Vectors Agribusiness ETF (NYSE Arca: MOO) dipped 51%."

Read the full article here: http://www.hardassetsinvestor.com/component/content/article/3/1526-steel-yourself-for-earnings-season.html?Itemid=39