GO
Loading...

One Steel Stock to Buy: Seymour

Worldwide demand for steel and coking coal make U.S. Steel stock likely to pop, Tim Seymour of EmergingMoney.com said Wednesday.

Ahead of this week's consumer production numbers, Seymour noted that 30 percent of the company's business was linked to the auto industry, and he expected strong results.

"I believe that the fundamental demand is there for steel," he said on "Fast Money," adding that iron ore and coking coal were strengthening.

Seymour said the stock was not expensive, trading at about five times EBITDA, especially if the economy recovers.

"Up to $28, this stock is very interesting. It's not expensive on 2014," he added. "U.S. Steel is going to rock it, and this is a stock that a lot of people are short."

Stuart Frankel's Steve Grasso wasn't buying it.

"When I look at steel, I look at seasonality of steel," he said.

November and December, Grasso added, was the optimal time to buy, historically up an average of 11 percent and 14.5 percent, respectively. "January and February, terrible months to be buying steel."

Trader disclosure: On Jan. 2, 2013, the following stocks and commodities mentioned or intended to be mentioned on CNBC's "Fast Money" were owned by the "Fast Money" traders: Steve Grasso is long ASTM; Steve Grasso is long AUO; Steve Grasso is long BA; Steve Grasso is long GDX; Steve Grasso is long LF; Steve Grasso is long LNG; Steve Grasso is long MHY; Steve Grasso is long P; Steve Grasso is long PXD; Steve Grasso is long NVIV; Steve Grasso is long PFE; Steve Grasso is long S; Guy Adami is long C; Guy Adami is long GS; Guy Adami is long INTC; Guy Adami is long AGU; Guy Adami is long MSFT; Guy Adami is long NUE; Guy Adami is long BTU; Tim Seymour is long BAC; Tim Seymour is long INTC; Tim Seymour is long WMT; Tim Seymour is long SBUX; Brian Kelly is long QQQ PUTS.

Contact Fast Money

  • Showtimes

    Halftime Report - Weekdays 12p ET
    Fast Money - Weekdays 5p ET

Halftime Report