Steel Stocks Buckle as Analysts Bail (XME)
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Shares of SPDR S&P Metals & Mining ETF (NYSE: XME) are trading lower in early trading on Monday. The move lower came as AK Steel (NYSE: AKS) shares took a 9 percent haircut after the company was downgraded to Sell at Goldman Sachs and to Neutral by Dahlman Rose.
Goldman Sachs cited weak flat steel prices, a highly leveraged balance sheet, and high pension funding requirements, among other things.
The analyst at Dahlman Rose stated he was cutting 2012 earnings estimates for steel service center companies due to declining steel prices, which are not expected to rebound in 2012.
Shares of U. (NYSE: X) are trading lower today in sympathy with AKS and are down close 3.75 percent. Shares of both companies are significantly lower in the past 30 days, with X losing 26 percent and AKS losing 17.75.
XME is lower by 1.4 percent. AK Steel has a 2.82 percent weighting in XME. United States Steel Corp has a weighting of 2.54 percent.
Goldman Sachs cited weak flat steel prices, a highly leveraged balance sheet, and high pension funding requirements, among other things.
The analyst at Dahlman Rose stated he was cutting 2012 earnings estimates for steel service center companies due to declining steel prices, which are not expected to rebound in 2012.
Shares of U. (NYSE: X) are trading lower today in sympathy with AKS and are down close 3.75 percent. Shares of both companies are significantly lower in the past 30 days, with X losing 26 percent and AKS losing 17.75.
XME is lower by 1.4 percent. AK Steel has a 2.82 percent weighting in XME. United States Steel Corp has a weighting of 2.54 percent.
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