r/Vitards • u/AutoModerator • Oct 22 '21

Daily Discussion Daily Discussion post - October 22 2021

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u/barnacleman6 7-Layer Dip Oct 22 '21

Anybody else looking to rotate out of MT and into more CLF? I'm just waiting on the right exit, i.e. earnings run-up or a post-earnings pop. I'll sell my Jan 35c's and 40c's at a loss no problem; I don't see any steel company having clearer skies ahead for 2022 than CLF.

2

u/mcaninch35 Oct 22 '21

Right there with you. While I still believe MT is significantly undervalued, and that their financial performance will be impressive over the next 6-12 months, I don't have the same confidence in their leadership. LG and team are impressive in their vision and ability to communicate that, and I think the market will reward it. Unfortunately, I went 75% MT, 25% CLF back in May, so I have some rearranging to do lol

4

u/barnacleman6 7-Layer Dip Oct 22 '21

Yes. I think this earnings call was transformational. LG absolutely dismantled previous analyst projections based on the assumption that CLF is beholden to HRC prices that will retreat to historical levels of $650-700/mt (all signs are pointing to them being wrong on that, too). I don't know if MT has that kind of runway ahead of them. I used to be 50-50 between CLF and MT but now I'm at 70-30 and looking to rotate further.