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I don't believe the run in steel stocks is over just yet and one of the key components of steel is molybdenum. This stock is looking like it is right at support and is finding some buying interest. Once people get back on the steel bandwagon they will realize that moly demand is also increasing. Keep this one on your radar and if it keeps making higher highs and lows, that will be the signal to start buying. Target is likely $10 or more.
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blacktuna
Jul 09 at 12:53 ET
Dear count, I like your style.. this is a small cap with potential.. the data i found for this stock (on yahoo finance) is incomplete and I can't see revenue or earnings growth - what source do you use for info on this company?
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CountdeMonet
Jul 09 at 5:50 ET
I'm not a fundamentals guy really. The chart looks good and the chart of the steel stocks also look good. Just anecdotally as well, a buddy of mine is working on an oil sands project and he was talking about how much pipe they need. They use sections weighing 40,000 lbs each. That's a lot of steel and the steel they use is the "thin walled" stuff to make it as light as possible. Molybdenum is used to strengthen this steel.
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ITGURU
Jul 09 at 8:20 ET
I agree with the theaory on molybdenum and forcast are that this mineralsemand will outpace supply beginning in 2008 and beyond. I am following TC however as they seem to have alarge share of this market