HAINSEY,I am fairly recent to this one bought a couple months...

HAINSEY,

I am fairly recent to this one bought a couple months ago then took profits but just got back in yesterday and even more more heavily today. Despite the fact I took profits in the short term, it is actually a long term play for me and I was releived to get back in at such good prices. Never expected to get in again below $3.

This one is Macquarie's preferred steel play. Heavily leveraged to domestic recovery, less strong perhaps in the short term will be international businesses (especially with strong AUD). Lots of cost cutting and more recently management mentioned improved trading conditions. Very heavily sold down so should move hard if the next management commentary (at the AGM on 12th November) is positive. Also had some production downtime on a furnace now completed so another positive. The real improvement in profit will be late 2010 I think but the market usually move ahead of that so I expect early 2010 and late 2009 will move up (at least that is my theory). The reduction in costs and improved business strategt should make it better than before the crisis but 12 November is very important for us all!!

I am pickiung up stocks where the recovery is later in the cycle (banks and miners have gone too high for me) so have been picking up some advertising/media stocks (eg vpg, pmp) also biotech (acl) as well as bsl. vpg, pmp and acl have started moving but bsl not yet. Good luck to recent buyer, I think we will be happy!