US Steel (X)
Well, due to late breaking news, US Steel is no longer on an upward tear as the rest of these picks are, but instead, its giving buyers a second chance. By the end of the day last Thursday, President Trump had made certain that no one anywhere knew exactly what his position was regarding his recently enacted steel and aluminum tariffs. When the tariffs were first announced, Alcoa, the nation’s biggest aluminum maker, did not like the tariffs as they complicated things by including Canada, where many of Alcoa’s factories are located. I said at the time that Trump would likely reverse himself. (If American aluminum companies don’t like the tariff, who exactly is supposed to?) That’s why I think the street over-reacted to his vacillations on Thursday by selling shares of X, which fell all the way back to its pre-tariff levels. So why is the president vacillating as to whether he plans to enforce the tariffs rigidly or allow many exemptions? The guess here is that it’s because he plans to do the former with regard to steel and the latter with regard to aluminum. That makes US Steel a screaming buy here.
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