US Steel Should Trade into High 20’s: Murphy
If you’re looking for a stock with some beta, Mike Murphy thinks US Steel gets the job done.
“We got long the name today,” reveals Murphy who is founder of Rosecliff Capital.
His thesis is simple - he thinks the stock is ridiculously cheap.
“Earlier in the session, the stock traded down to levels it had only touched once before in 2009 and then before that in 2003."
That alone wouldn't generate gains but Murphy think an upside catalyst has manifest, itself.
“Expectations were that they would take down guidance but they didn’t.”
Also the company is converting from coal to nat gas which Murphy says should generate savings and boost the bottom line.
All told, “From this oversold level – I think it could get back into the high 20’s,” he concludes.
Posted by CNBC's Lee Brodie
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Trader disclosure: On June 6, 2012, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s "Fast Money" were owned by the "Fast Money" traders; Brian Kelly is long QQQ Calls; Karen Finerman is long AAPL; Karen Finerman is long BAC; Karen Finerman is long FPM; Karen Finerman is long WMT; Karen Finerman is long TGT; Karen Finerman is long RIMM; Karen Finerman is short SPY; Karen Finerman is short IWM; Karen Finerman is short MDY; 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; Mike Murphy is long JPM; Mike Murphy is long TGT; Mike Murphy is long X; Mike Murphy is long HAL
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CNBC.com with wires.