BSL - Bluescope Steel

Yes!!!, nice overnight sell and buyback first thing this morning,easy money.....the only one of the top 50 to fall over night, so had to sell straight away....made an average weeks wages ..... ahah

is anyone still holding onto or buying BSL at the moment? it seems people are still buying BSL over the last four months despite profit downgrades and negative news about the world steel market/costs.

i suspect that the sp's steady uptrend is being supported by the large institutions and fund buying...

scsl said:

is anyone still holding onto or buying BSL at the moment? it seems people are still buying BSL over the last four months despite profit downgrades and negative news about the world steel market/costs.

i suspect that the sp's steady uptrend is being supported by the large institutions and fund buying...

Click to expand...

BSL is still, despite all the negative news, an attractive longer term investment. I am sure a lot of super funds hold this stock as it is currently trading well below fundamental value and btw the asian expansion could well prove to be its salvation.

redandgreen said:

BSL is still, despite all the negative news, an attractive longer term investment. I am sure a lot of super funds hold this stock as it is currently trading well below fundamental value and btw the asian expansion could well prove to be its salvation.

Click to expand...

i just had a read of this recent article posted on FNArena.

http://www.fnarena.com/index2.cfm?type=dsp_newsitem&n=234C46FD-17A4-1130-F529399DD754497E

brokers are mixed about their opinions on the asian businesses. GSJBWere are uncertain about the timing and size of any improvements that may arise, with a sp valuation of $8.27. Merrill Lynch believe that rising zinc and aluminium costs can be kept under control. they have a huge sp target of $10.50!

I short sold them last week as they seem to have a noticeable trend when they come off a top as you can see from the last year there are 5 big tops and they all fall away the same......will probably take my money and run tomorrow, as Im happy with a couple of grand for a short term, my number 2 rule.....if you're happy with what you've made, get out.

So I expect them to be lower tomorrow by 1-2% and possibly the same the next day, but should rise again after that if BSL follows the same pattern.

If the SP goes up a little tomorrow, I will probably still walk away with a bit of loot.

i shorted BSl today,expecting it drop to 7.5 or lower bolliger band, stop set at 8
cheers

is anyone still holding onto or buying BSL at the moment?

Click to expand...

I hold BSL and will continue to do so for a long time, forget all the recent hype, it is a great company with excellent longterm prospects IMHO.

Realist said:

I hold BSL and will continue to do so for a long time, forget all the recent hype, it is a great company with excellent longterm prospects IMHO.

Click to expand...

Realist..being new at this..[what do I know] I agree only because I have 'history' with this one....from before they existed.
Cheers...I remember the add.

Well I was right on the money and got out of my short position first thing this morning and should have bought back some more ....would have made another $500 for the day, never mind .....North Korea could change my graph mapping for the next week or so anyway. $2000 profit in a week, what a funny game this is, no need to go find a real job.

With the all the takeover and mergers in the industry around the world, perhaps Bluescope is a candidate.

bsl fall less than peer group. shall i close my short position today?
thanks

Steel Biz Briefing

According to Patrick Flockhart, Managing Director at Steel Biz Briefing a bit of weakness is coming out of the former CIS countries like Russia and Ukraine.

Western Europe is still very strong and it looks like there are going to be some further price rise coming in through Q4 that is for the period of October till December, he adds.

There are lots of exports coming out of China for the first time but as of now they are not significantly impacting the price situation, he further adds.

Q: After looking at what Baosteel said today, do you expect softness in the steel market globally?

A: We haven’t exactly seen what Baosteel has said but at the moment there is a bit of weakness in China for domestic price scene and also for export prices. We are also seeing a bit of weakness coming out of the former CIS countries like Russia and Ukraine.

Western Europe is still very strong and it looks like there are going to be some further price rise coming in through Q4 that is for the period of October till December. In the eastern part of the world, in China and Russia there is a weakness but generally speaking in the advance economies the steel cycle are still pretty solid.

It might be that we are heading for an overall top of the cycle in Q4. But in Q1, we will probably off the top of that cycle but the general view at the moment is that the prices will not be going down significantly in Western Europe and United States if at all. They are bit of a mixed bag and are perhaps showing the regional nature of the worldwide steel business.

A lot of people were worried about lot of exports coming out of China potentially having a disruptive effect on United States and Western Europe. There are lots of exports coming out of China for the first time but as of now they are not significantly impacting the price situation. So quite a varied picture there I am afraid but very interesting too.

Q: What are average levels at which you find prices now in the US, Europe and China?

A: The United States price according to the US Steel Index last week was USD 648 for a short-term and the European price was about EUR 485 per tonne last week and these are the European and the American domestic prices.

The European price is a metric price. Prices coming out of places like Ukraine etc at the moment are probably in the order of round about USD 500 base price.

Click to expand...

BSL went ex a 24c dividend today & is only down 8c. But the ****** MM's have got the warrants down 15c.

Yeah I own BSL. It's yield is at least good. And with a PER of 9.7 it aint overvalued...

That is the best I can say about it. I'm down on this one..

Realist said:

Yeah I own BSL. It's yield is at least good. And with a PER of 9.7 it aint overvalued

Click to expand...

What about future dividends will they remain at same level?

dubiousinfo said:

BSL went ex a 24c dividend today & is only down 8c. But the ****** MM's have got the warrants down 15c.

Click to expand...

Have they perhaps modified the strike?

GP

GreatPig said:

Have they perhaps modified the strike?

GP

Click to expand...

Nah strike is unmodified GP. They increase the extrinsic value leading up to an ex div date & then when it goes ex div, it drops back. Happens all the time. You just have to buy well before ex date.

Todays Australian

BRAZILIAN steel maker Companhia Siderugica Nacional's pound stg. 5.3 billion ($13.25 billion) bid for Anglo-Dutch steel giant Corus could focus fresh attention on Australia's largest steel company, BlueScope, becoming a target as the much anticipated global consolidation of the steel industry gathers pace.

Could be reason for recent increase in SP!

http://www.theaustralian.news.com.au/story/0,20867,20786047-643,00.html

Ta-ta Anglo-Dutch may mean hello BlueScope
Andrew Trounson
November 20, 2006
BRAZILIAN steel maker Companhia Siderugica Nacional's pound stg. 5.3 billion ($13.25 billion) bid for Anglo-Dutch steel giant Corus could focus fresh attention on Australia's largest steel company, BlueScope, becoming a target as the much anticipated global consolidation of the steel industry gathers pace.
CSN's bid, subject to due diligence, trumps an agreed pound stg. 5.1 billion offer from India's Tata Steel and is expected to spark a bidding war, as Indian media reported that Tata could come back with a higher offer as soon as this week.

Tata has been cast as a potential predator for BlueScope, given the two have formed a joint venture in India to build steel-product manufacturing plants, and Tata could be expected to take a fresh look at the Australian company if beaten by CSN for Corus.

But while BlueScope's emerging downstream-focused Asian businesses may be attractive to Tata, bringing technology and new, high-value-added products such as prefabricated buildings, BlueScope lacks the global scale that is currently the prime driver of industry consolidation.

Nevertheless, in a report last week, Credit Suisse highlighted the potential appeal of BlueScope to Tata. "(Tata) has aggressive growth aspirations and continues to discuss its interest in strengthening its Asia-Pacific presence by expansions and acquisition," Credit Suisse noted.

BlueScope chief executive officer Kirby Adams is in Vietnam today to highlight that his Asian strategy, which has been troubled by higher costs and building delays, is now moving from the construction phase and into the delivery phase, with the opening of the company's new $136 million Phu My flat-steel metallic coating plant near Ho Chi Minh City.

The stakes have been raised in the global steel sector since the $US35 billion merger earlier this year of Mittal and Arcelor, the world's No1 and No2 producers, respectively. In terms of production, the two combined are three times the size of their nearest competitor, Japan's Nippon Steel.

BSL SP has increased from $6.48 Oct 2 to $8.07 Dec 11 (24% increase)!!!
-- looking verygood!

Todays Australian


http://www.theaustralian.news.com.au/story/0,20867,20911191-643,00.html
Boutique bank on right side of fence
Katherine Jimenez, Kevin Andrusiak
December 12, 2006

statements included:

Bell Potter director of research Peter Quinton said: "I suspect we are in for a good, solid year of merger and acquisition activity.

Mr Quinton listed more than 20 Australian companies which would probably attract some degree of private equity interest, including a mix of miners and industrial companies.

Those mentioned included Zinifex, Macquarie Airports, Bluescope, Computershare, Santos and Lend Lease.

Todays Age:

Companies steel themselves for plan B as countdown clock runs down
Stephen Bartholomeusz
January 24, 2007

THE countdown has started. In exactly a week, OneSteel and Smorgon Steel will switch to their back-up merger plan, unless BlueScope Steel has a change of heart.

When OneSteel and Smorgon announced their contingency plan for their $1.6 billion merger in mid-December, they essentially invited BlueScope to either bid for Smorgon by January 3 or come back to the negotiating table by January 31.

The three steel companies had been trying to stare each other down since the middle of last year, when the merger was announced. That provoked a $320 million sharemarket raid by BlueScope that gave it 20 per cent of Smorgon and the effective ability to block the planned scheme of arrangement.

For full article, refer link below


http://www.theage.com.au/news/busin...clock-runs-down/2007/01/23/1169518709964.html