This Industrial Stock Is Finally Ready to Shine. Is It a Buy?
There's a bidding war taking place around United States Steel (NYSE: X). It was a bit of a shock to the market, but when you dig into the company's capital spending plans, the takeover interest makes complete sense. Here's why this steel maker's competitors are swarming like sharks, and what you should probably do about it.
United States Steel is a very old steel maker, which legitimately helped to build the United States into the country it is today. Although its history is impressive, it has also left the company with a bit of a legacy issue. U.S. Steel has long relied on blast furnaces for its steel production. This is an older technology that is very profitable when steel demand is strong, but because of the high fixed costs of running a blast furnace, the company tends to bleed red ink during lean years.
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Source Fool.com
