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.