Should You Buy United States Steel While It's Below $55?
United States Steel (NYSE: X), which is usually just called U.S. Steel, is an iconic name in the global steel industry. But sadly, it's no longer an industry-leading company.That doesn't mean there's no value in the company's business, but it helps explain why U.S. Steel agreed to sell itself to Japanese steel giant Nippon Steel for $55 per share. Things got very complicated after that deal was announced and still remain complicated today.You may have guessed that U.S. Steel makes steel. But the key here is the type of steel it makes and how it makes it, which is primary steel and blast furnaces, respectively. The world needs primary steel, which is created with iron ore and metallurgical coal and is a dirty, expensive process.Continue reading
United States Steel (NYSE: X), which is usually just called U.S. Steel, is an iconic name in the global steel industry. But sadly, it's no longer an industry-leading company.
That doesn't mean there's no value in the company's business, but it helps explain why U.S. Steel agreed to sell itself to Japanese steel giant Nippon Steel for $55 per share. Things got very complicated after that deal was announced and still remain complicated today.
You may have guessed that U.S. Steel makes steel. But the key here is the type of steel it makes and how it makes it, which is primary steel and blast furnaces, respectively. The world needs primary steel, which is created with iron ore and metallurgical coal and is a dirty, expensive process.
