Goldman Sachs Kicking Steel While It’s Down (AKS, STLD, TX, CMC)

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By Douglas A. McIntyre Published
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It is a bit surprising when you see a firm like Goldman Sachs downgrade many key steel stocks after their shares have fallen by so much.  That is what we are seeing this morning.  Many steel stocks are down more than 75% from their recent year highs.  It sees lower steel and scrap prices on deteriorated demand in the coming months.  Below is the firm’s downgrade list, although Commercial Metals (NYSE: CMC) was actually upgraded.

AK Steel (AKS) Cut to Sell from Neutral.  AK Steel closed at $14.17 yesterday and it is down sharply from a high of $73.07.

Steel Dynamics (STLD) Cut to Neutral from Buy.  Steel Dynamics closed at $9.51 yesterday and it is down from a high of $40.92.

Ternium S.A. (TX) Cut to Neutral from Buy.  Ternium closed at $9.98 and is down from a 52-week high of $45.99.

Goldman Sachs did issue one upgrade in the sector.  Commercial Metals (CMC) was raised to Buy from Neutral. This one is indicated higher after closing at $10.58 yesterday.  It is down about 70% from its $39.80 52-week high.

Jon C. Ogg
October 9, 2008

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About the Author Douglas A. McIntyre →

Douglas A. McIntyre is the co-founder, chief executive officer and editor in chief of 24/7 Wall St. and 24/7 Tempo. He has held these jobs since 2006.

McIntyre has written thousands of articles for 24/7 Wall St. He is an expert on corporate finance, the automotive industry, media companies and international finance. He has edited articles on national demographics, sports, personal income and travel.

His work has been quoted or mentioned in The New York Times, The Wall Street Journal, Los Angeles Times, The Washington Post, NBC News, Time, The New Yorker, HuffPost USA Today, Business Insider, Yahoo, AOL, MarketWatch, The Atlantic, Bloomberg, New York Post, Chicago Tribune, Forbes, The Guardian and many other major publications. McIntyre has been a guest on CNBC, the BBC and television and radio stations across the country.

A magna cum laude graduate of Harvard College, McIntyre also was president of The Harvard Advocate. Founded in 1866, the Advocate is the oldest college publication in the United States.

TheStreet.com, Comps.com and Edgar Online are some of the public companies for which McIntyre served on the board of directors. He was a Vicinity Corporation board member when the company was sold to Microsoft in 2002. He served on the audit committees of some of these companies.

McIntyre has been the CEO of FutureSource, a provider of trading terminals and news to commodities and futures traders. He was president of Switchboard, the online phone directory company. He served as chairman and CEO of On2 Technologies, the video compression company that provided video compression software for Adobe’s Flash. Google bought On2 in 2009.

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