Is Steel Strong Enough?


U.S. Steel (X), the nation's largest steelmaker, melted this weak on dismal news from the housing and auto markets. Has the sell-off created a buying opportunity?

Guy Adami sees consolidation coming in the mining sector and he thinks U.S. Steel is a likely takeover candidate. Consequently, Adami says it’s a buy.

Tim Seymour agrees. He adds there’s speculation that Korea’s POSCO (PKX) might want to acquire U.S. Steel as well as a couple of the Russian steel makers. The only issue, says Seymour, is whether Americans object to a foreign entity buying U.S. Steel?

He also recommends watching Mechel (MTL).


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Trader disclosure: On Nov. 9, 2007, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders; Najarian Owns (C) Options, (CSCO) Options, (GOOG) Options, (GS) Options, (XLF) Options (YHOO) Options; Finerman's Firm And Finerman Own (GS), (HD), (KALU); Finerman's Firm Owns (WMT), (BEAS), (KSS); Finerman's Firm Is Short (LEH), (MBI), (SPY), (IYR), (IJR), (IWM); Finerman's Firm Owns (BIIB) Options; Finerman's Firm Owns (MSFT) Options; Finerman's Firm Owns Russell 2000 Puts; Finerman's Firm Owns S&P 500 Puts; Seygem Asset Management Owns (AAPL), (CSCO), (EEM), (F), (GLD), (MER), (SBUX), (X), (YHOO), (MSFT),Gazprom