Rebound Play?

Summary


IS IT THE TIME TO CATCH depressed steel stocks on the cheap? Well, it depends on whether you have the cash to stomach their volatilities. Steel prices, like other commodities, collapsed in 2008 and many investors got their hands burnt playing steel stocks, which subsequently crashed as well.

However, a rebound in steel prices recently, albeit from their beaten- down value, has gotten some analysts courageous again on the prospects for steel stocks.

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Extract


Rebound Play?

However, is the rebound in steel prices evidence of real demand coming back or is it just speculative restocking by steel players in response to government stimulus packages around the world, which are intended to kickstart consumer consumption again?

If it is the former, then there may be opportunity for investors to pick up steel stocks like...

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