Why Steel Stocks Will Beat Downturn
Commodities are unwinding -- but Bob Richards, Longbow Research analyst, says steel stocks are only going to get stronger.
"I certainly think the selloff has been overdone," he told CNBC. He cited "overbuying by Asian scrap consumers" as a key selloff catalyst -- and one which won't be repeated soon.
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He acknowledged that Chinese infrastructure growth is still going strong, despite foreign investors' qualms -- and said there are even more global indicators forbullishness on steel, including sector fundamentals.
"There are systemic reasons for prices to stay high," Richards assured investors.
Stocks discussed in interview include:
(Click on tickers for company headlines)
Other sector leaders:
- U.S. Steel
- AK Steel Holding
- Tata Steel Ltd. (privately held)