"The steel sector is one area our current administration has voiced continual support for." Karim Rahemtulla, Head Fundamental Tactician, Monument Traders Alliance Editor's Note: Uncle Sam is going shopping. Recently, the Trump Administration has been picking up shares of private American companies. To show you how to take advantage, our Tacticians Bryan and Karim are going live Wednesday at 11 a.m. for an event they're calling "Uncle Sam's Ultimate Shopping Spree." It's completely free. Click here to learn more about this event. - Ryan Fitzwater, Publisher
We're entering uncharted territory for government involvement in companies. It started back in August, when the Trump Administration announced a 10% equity stake in Intel. That's just one example. The truth is… I'm not a fan of these mandates. When the government is picking winners and losers and not the market – the track record is not encouraging. We'll be talking more about it on Wednesday. But for now, I'm watching companies that could be strong candidates for a government stake. One of those companies is Cleveland Cliffs (CLF). CLF is the largest flat-rolled steel producer in North America. Because of the strategic importance of steel (defense, infrastructure, supply chains), it's a sector that governments might view as a candidate for oversight. Keep in mind, I've traded CLF multiple times over the years in The War Room. This company isn't an unknown, its backed by strong fundamentals. The fact that President Trump likes the steel sector is just a bonus. Trump's support for U.S. steel has been consistent. Last spring at a rally in Pittsburgh, he said he would raise tariffs on imported steel from 25% to 50%. CLF surged 22% following the announcement. Lourenco Goncalves, the CEO of CLF, receives personal donations and $13 million to support for steel tariffs. So with the steel sector known for lobbying heavily for tariff protection and favorable trade policies, I believe CLF is a stock to watch going forward. | 
Post a Comment
Post a Comment