I am not being forceful enough on
. When the best steel company in the world -- sorry,
, I love you, but NUE has been run well since Day One, and X has only been run well since John Surma got in -- prices a deal way in the hole and then it goes down from there, before rallying back over the print price yesterday (the price of the secondary of 25 million shares) and once again dipping below it, well, that's opportunity. That's
at $55. That's
in the $60s -- two in-the-hole secondaries that got back above the print price and then went crazy to the upside. That's the pattern of greatness out three months, even if it is a recipe of pain out three days.
Think about it. Everyone who wants NUE has been able to buy it at prices it should never have been. The only people who are left are those non-traders who haven't panicked out. The numbers are too low. Steel remains in short supply -- check the terrific piece in
The Washington Post
yesterday -- and Nucor is protected from sky-high scrap prices by its recent acquisition.
We don't get these situations often: a high-quality company prices a secondary that is down a lot already and it goes lower. But in my experience, unless you jump up and down and shout it from the rooftops, people miss it.
If you are a bull on steel (as I am), this is a great chance. Sure, yesterday was better. However, anything around the $73 print price is a win in my book now that most of the weak hands were shaken out by the decline.
I'm salivating at the prospect of buying this incredibly oversold story with the better balance sheet than it had before.
How great is Nucor? I liked this company even when the foreigners were dumping. Special dividend, fairly consistent earnings from a
company. What's not to like? Great moment to buy.
remain the keys to this market. Either can ignite a rally. It's MasterCard's turn today with a magnificent quarter. What a stock! ... Should
be falling like this? The group's out of favor. This one's a momentum stock -- it's going to get clobbered with the cohort even if it is better than the cohort.
At the time of publication, Cramer was long Freeport-McMoRan and XTO.
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