Sarhan Capital CEO On When To Get Into U.S. Steel
Adam Sarhan is the CEO of Sarhan Capital, an investment and advisory firm that offers a suite of services to both institutional and individual investors.
Sarhan discussed the steel industry and offered advice on how to navigate owning shares of United States Steel Corporation (NYSE: X) in an uncertain commodity environment.
"I would say if you are not involved, I wouldn't buy it right now," Sarhan discussed. "But if the stock starts moving and breaks out above the recent highs of $27.50- $28.00 to maybe take a look at it."
Sarhan said that investors are bullish on steel itself and maintain a view that it is urgent to gain exposure to the commodity immediately, now could be a good time to acquire shares of U.S. Steel close to its weekly lows and just above its 50-day moving average.
However, he added that he wouldn't want to invest in the sector himself as he is electing to wait for further confirmation shares can move to the upside. In addition, Sarhan stated that he "likes to buy leaders" and the steel sector is not a leader right now, although if he observes a sector rotation into steel, it would be worthy to revisit an investment decision at that time.
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