A steel glut has investors worried but they need to realize that there are two types of steel stocks. United States Steel (X) is a commodity steel stock but investors should own specialty steel makers like Reliance Steel & Aluminum (RS), Oregon Steel (OS) and Allegheny Technologies Inc (ATI). Demand for structural steel is up 9%. RS said business is great. Nucor (NYSE:NUE) just did a special dividend also. Selling the stocks makes no sense to Jim. Sell X he says but keep the others.
Still bullish on Altria Group Inc (MO), the stock is going to 100 from the recent 77. This is based in large part on a turn around by Kraft Foods Inc (KFT).