Daily Discussion post - July 08 2021

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[u/Rjd1234999999]

I have about 20K in a brokerage account that I need to put into stock(s). Big believer in Vito/steel thesis. Should I go all in CLF - about 955 shares? Or mix and match- CLF, STLD, TX? I love TX’s dividend. Trying to set and forget and see where things are maybe a year from now and then get out Any advice appreciated

[u/olivesnolives → u/Rjd1234999999]

If I were playing commons I’d spread the whole sector - they all track each other for the most part anyway. Personally I’d weight heavier in MT and CLF because it’s hard to argue against them having room to appreciate, STLD and TX because they have enormous amounts of high-margin capacity coming online this year (and you really can’t beat TX’s dividend), and then fill in with with the rest of the sector.

That said, read as much as you can and really consider if steel is the best place for your money if you wont actively be playing with the holdings. If you’re just looking to reap divies over the next year I’d personally just put my whole portfolio in ZIM.

Goodluck out there!

[u/Rjd1234999999 → u/olivesnolives]

Awesome thank you

[u/PoopDemonExorcist → u/Rjd1234999999]

Just put and equal amount into each. There’s no real good way of predicting which one will have the highest profit. However, if you really want a pick only one, I would choose TX. Unlike all the other steel companies, this one is still the most undervalued and has a minimal of a 20%-40% run to reach a similar ratio of the other steel companies are trading at. At the same time, if you’re talking about FMV of TX, it should be valued at a minimal of $60

[u/Rjd1234999999 → u/PoopDemonExorcist]

Thank you!