Recovery in Commodities = Profitable Opportunities

Robert Hsu, November 03, 2009

In this Issue:

Robust Chinese Demand Driving Commodities Recovery
A Bullish Outlook on Gold
A Recovery in the Steel Industry
Profiting from a Rebound in Steel Demand

Profiting from a Rebound in Steel Demand

Steel production bottomed earlier this year, likely in March or April. And I believe that the Asian steel industry has turned around and is now seeing strong business prospects. That coupled with low inventories and strong demand bode particularly well for South Korea's largest steel producer.

But those aren't the only factors working in this company's favor…The company is one of the best-managed and largest steel companies in Asia. So historically, it has one of the most stable performances in the global steel sector.

This was particularly apparent last year. While the company wasn't spared from the global steel sector declining earlier this year, it held up much better than other steel mills. And it's directly in line to profit from Chinese steel demand -- a huge positive going forward.

In fact, the company has already posted strong results in the third quarter. Thanks to a rebound in industrial demand for steel, this South Korean company's profit was five times better than second-quarter results!

And this is just the beginning -- I'm expecting the company's earnings to pick up sequentially in the fourth quarter. That makes now an ideal time to get on board!

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