ArcelorMittal SA’s ‘s talks to sell its local unit to South Africa’s state-owned Industrial Development Corp. are being held up by differences over the entity’s valuation, according to people familiar with the matter. https://t.co/JEgnJsVf32 ...

Core Viewpoint - Live Ventures Incorporated is launching a strategic campaign to enhance communication with stakeholders, aiming to strengthen its brand and stimulate growth opportunities [1][3]. Group 1: Company Overview - Live Ventures Incorporated (Nasdaq: LIVE) is a diversified holding company focused on value-oriented acquisitions of domestic middle-market companies [4]. - The company's acquisition strategy is sector-agnostic, targeting firms with stable cash flows and strong market positions [4]. - Current portfolio includes companies in various industries such as textile, flooring, tools, steel, and entertainment [4]. Group 2: Strategic Partnership - The company has partnered with Brandsinger LLC, a branding and communications consultancy based in New York City, to enhance its branding efforts [2][3]. - Brandsinger, founded in 2008 by Claude Singer, has a history of working with well-known financial institutions and private equity firms [2][5]. - The partnership aims to leverage Brandsinger's expertise to sharpen strategy, build transparency, and amplify the value of portfolio companies [3]. Group 3: Campaign Objectives - The newly announced campaign will encompass investor relations, public relations, employee communications, and community outreach [3]. - The initiative is designed to strengthen the corporate narrative, elevate communications across the portfolio, and enhance transparency for all stakeholders [3]. - The campaign reflects the company's commitment to building durable and recognizable portfolio brands that support long-term shareholder value [3].

Core Viewpoint - Cleveland-Cliffs has seen a 14% increase in stock price year-to-date, but its operational performance and financial health are concerning, making it vulnerable to cyclical fluctuations in steel prices [2] Financial Performance - In Q2 2025, Cleveland-Cliffs reported revenues of $5.8 billion, a 6% decline year-over-year due to weakened steel prices [3] - Net income fell to $345 million, a 22% decrease, while adjusted EBITDA dropped to $720 million [3] - Free cash flow decreased to $210 million, reflecting lower prices and increased input costs [3] Growth Analysis - Cleveland-Cliffs has experienced declining growth, with revenues decreasing at an average annual rate of 7.9% over the last three years, compared to 5.3% for the S&P 500 [4] - Sales fell by 12% in the past twelve months, from $21 billion to $18 billion, with a recent quarterly revenue decline of 3.1% year-over-year to $4.9 billion [4] Profitability Metrics - The company incurred $1.6 billion in operating losses over the past year, with an operating margin of -8.6% and a net income margin of -9% [5] - Cleveland's operating, cash flow, and net margins are significantly lower than the S&P 500 averages of 18.8%, 20.2%, and 12.8% respectively [5] Financial Stability - Cleveland-Cliffs has a high debt-to-equity ratio of 145.1%, compared to the S&P 500 average of 20.2% [7] - Cash constitutes only 0.3% of total assets, indicating limited flexibility to invest and navigate uncertainties [7] Investment Appeal - The combination of weak growth, limited financial stability, and low profitability makes Cleveland-Cliffs unappealing to investors, despite its low valuation [8]

Summary of Key Points from the Conference Call Industry Overview - The conference call focuses on the **iron ore and global steel industry**, particularly the dynamics of supply and demand, pricing forecasts, and production trends in China and other regions [2][3][21]. Core Insights and Arguments 1. **Iron Ore Price Forecast**: The Q4 2025 iron ore price forecast has been revised up to **$95/t** from a previous forecast of **$90/t**, reflecting a more balanced iron ore market than expected [2][3]. 2. **Chinese Steel Production**: There are no substantial production cuts in the Chinese steel industry, despite government efforts to address overcapacity. This has led to a worsening domestic oversupply of steel [2][6]. 3. **Domestic Steel Prices**: A **15% rally** in domestic steel prices observed in June/July is expected to fade, putting pressure on steelmaking margins and raw material prices [2][9]. 4. **Iron Ore Port Stocks**: Chinese iron ore port stocks are expected to build by **48 million tons (Mt)** in 2026, contributing to a decline in iron ore prices to **$80/t** by the end of next year [2][3][4]. 5. **Ex-China Steel Markets**: Optimism for ex-China steel markets in 2026 is noted, with demand growth and lower Chinese exports expected to lift international steel prices. China's share of global crude steel production is projected to decline to **51%** in 2026 from **57%** in 2020 [2][3][21][28]. 6. **US Steel Market**: The US steel market is currently weak, limiting near-term price increases. The domestic Midwest hot rolled coil spot price is **15% below** its March peak, despite a **50% tariff rate** [33][37]. 7. **European Steel Prices**: European steel prices are expected to see upside due to improving fundamentals and potential policy changes, including the EU's Carbon Border Adjustment Mechanism and adjustments to steel import quotas [38][44][45]. Additional Important Insights 1. **Global Supply Dynamics**: Global seaborne iron ore demand is expected to contract by **1%** in 2026, while supply (excluding India and China) is projected to increase by **3%**, exacerbating the stock build in China [14][20]. 2. **China's Steel Demand**: China's steel demand is forecasted to continue contracting due to weaknesses in the construction sector and manufacturing [21][28]. 3. **Ex-China Demand Growth**: Ex-China apparent steel demand increased by **1.6% YoY** in H1 2025, with a forecasted growth of **2%** for the full year and **3%** in 2026 [21][22]. 4. **China's Net Steel Exports**: China's net steel exports are expected to rise by **6% YoY** in 2025 but are projected to fall by **21%** in 2026 due to increased headwinds [26][28]. 5. **Policy Risks**: Potential changes in EU steel import quotas and the implementation of the Carbon Border Adjustment Mechanism could significantly impact regional prices and domestic producers' margins [44][45]. This summary encapsulates the key points discussed in the conference call, providing insights into the current state and future outlook of the iron ore and steel industry.

Group 1 - The article discusses the author's investment philosophy, focusing on undervalued and disliked companies with strong fundamentals and good cash flows [1] - Energy Transfer is highlighted as a company that was previously overlooked but has shown potential for substantial returns [1] - The author expresses a preference for long-term value investing while occasionally engaging in deal arbitrage opportunities [1] Group 2 - The author emphasizes a lack of understanding in high-tech businesses and certain consumer goods, indicating a preference for more traditional investments [1] - There is a clear skepticism towards cryptocurrencies, with the author questioning their investment viability [1] - The article aims to foster a community of investors seeking superior returns and informed decision-making through platforms like Seeking Alpha [1]

Core Viewpoint - Friedman Industries has acquired Century Metals and Supplies, Inc., enhancing its market presence and product offerings in the southeastern U.S. and Latin American markets [1][2]. Group 1: Acquisition Details - The acquisition includes working capital, buildings, processing and other equipment, and related real estate [1]. - Century Metals has generated average annual revenues of approximately $111.0 million over the past three fiscal years [1]. - The transaction is an all-cash purchase and is expected to be immediately accretive [1]. Group 2: Strategic Implications - The acquisition broadens Friedman's reach into new regions and enhances its core hot-rolled steel business [2]. - It adds coil slitting capabilities and expands the product portfolio to include cold-rolled, coated, and stainless steels, as well as non-ferrous materials like aluminum, copper, and brass [2]. - The acquisition provides strategic access to growing residential and corrosion-resistant markets [2]. Group 3: Company Background - Friedman Industries is headquartered in Longview, Texas, and operates multiple manufacturing plants across the U.S. [4]. - The company has two reportable segments: flat-roll products and tubular products, processing both ferrous and non-ferrous coils [4].

Core Insights - Warren Buffett's investment strategy remains focused on equities, despite challenges in finding value in the current market [1][2] - Berkshire Hathaway's cash position has increased to $344 billion due to more stock sales than purchases over nearly three years [2] - In the last quarter, Berkshire invested $3.9 billion in equities, acquiring 10 new positions [3][5] Investment Opportunities - Berkshire established or added to 10 positions, including UnitedHealth, Nucor, Lennar, Constellation Brands, and others [5] - UnitedHealth's stock is seen as a potential opportunity despite facing challenges such as poor financial results and an investigation into Medicare Advantage fraud [7] - Nucor is positioned to benefit from increased demand in data center construction and reduced competition from foreign suppliers due to tariffs [8] - Homebuilders like Lennar and D.R. Horton are under pressure from high prices and interest rates, but the ongoing housing shortage presents a buying opportunity [9] Constellation Brands - Constellation Brands is highlighted as a company with a strong competitive advantage, owning exclusive distribution rights to popular Mexican beer brands [11][12] - The company gained market share in the beer segment, capturing 0.6 points of dollar sales share last quarter [13] - Despite challenges in its wine and spirits business, Constellation generates significant free cash flow, projected at $1.5 billion to $1.6 billion this year [15] - The stock trades at less than 13 times forward earnings estimates, making it attractive for value investors [16][17]

Summary of Key Takeaways from the SMU Steel Summit 2025 Industry Overview - The conference focused on the North American steel market, with over 1,500 attendees from more than 500 companies, including producers, service centers, traders, consultants, and regulators [1] Core Insights 1. **Mixed Sentiment on Demand**: - Industry participants expressed a mixed outlook for demand in the second half of 2025 compared to the first half, with some expecting a decline in volumes while others anticipated steady demand [2][4] - Average volumes in the first half of 2025 were reported to be up 3-5% year-over-year, but flat volumes for the year would be considered a win by some [4] 2. **US HRC Pricing Expectations**: - There is a consensus that US Hot-Rolled Coil (HRC) pricing could remain stable to slightly improve due to continued import displacement, with expectations for prices to stay between $800-$900 per short ton in 2025 [2][4] 3. **Tariff Stability**: - Most participants believe that US tariffs on imported steel will remain in place, although there is uncertainty regarding the final levels and potential exceptions, particularly concerning Canada and Mexico [2][4] 4. **Cautious Optimism for 2026**: - Overall sentiment reflects cautious optimism for the near term, with a more constructive outlook heading into 2026 [3] Company-Specific Insights 1. **Nucor Corporation (NUE)**: - Rated as a Buy with a 12-month price target of $182, based on an 8.8x multiple on revised EBITDA estimates [6] - Risks include lower-than-expected demand from fiscal stimulus, stalled steel price improvements, and underperformance from recent acquisitions [6] 2. **Commercial Metals Company (CMC)**: - Also rated as a Buy with a 12-month price target of $67, based on a 7.5x multiple on EBITDA estimates [6] - Similar risks as NUE, including smaller-than-expected growth in the Emerging Business Group and demand from fiscal stimulus [6] 3. **Cleveland-Cliffs Inc. (CLF)**: - Rated as a Buy with a 12-month price target of $12.85, based on a 7.2x multiple on EBITDA estimates [6] - Risks include lower-than-expected cash flow and prolonged downturns in US automotive production, which constitutes about one-third of CLF's direct sales [6] Additional Considerations - The conference highlighted the importance of understanding the dynamics of the steel industry, including the impact of tariffs, pricing stability, and demand fluctuations, which are critical for investment decisions in this sector [2][4][5]

Summary of Key Points from the Conference Call Industry Overview - The focus is on tariffs and China, with a mention of a potential "new" EU market [1] - Key themes post H1 results include the impact of tariffs on global growth and efficiency, particularly in the copper sector [2] Core Themes and Arguments - **Tariffs**: Ongoing changes are seen as detrimental to the US and global growth, with copper tariffs negatively affecting valuations [2] - **Dollar**: Speculation on whether the dollar has peaked or if further declines are expected, with the market pricing in potential rate cuts [2] - **China**: Mixed signals with credit data appearing stable, but property market issues persist; grid investment in China is projected to increase by 8% this year [2] - **Energy Transition**: Rapid developments outside the US, with battery storage becoming a new driver for metal demand and solar energy being the lowest cost option [2] Company-Specific Insights - **BHP**: Focus on smoothing copper production and managing costs despite project overruns [6] - **Rio Tinto**: New CEO, emphasis on copper growth and potential lithium price stabilization [6] - **Glencore**: Coal market recovery, but challenges in copper production expected in H2 [6] - **Anglo American**: Restructuring efforts and key commodities performing well [6] - **Vale**: Volume growth and cost improvements in base metals driving profits [6] - **Teck**: Issues with QB ramp-up affecting guidance despite copper growth [6] - **South32**: Copper and aluminum are key growth drivers, with challenges in nickel [6] - **Fortescue**: Profit impacted by iron price fluctuations, with a focus on decarbonization capital expenditures [6] - **Freeport**: Positioned as a leading copper company in the US, with growth driven by leaching processes [6] - **Antofagasta**: Notable 30% low-risk volume growth with strong copper leverage [6] - **ArcelorMittal**: Consolidation efforts in the EU market are generating investor optimism [6] Commodities Market Insights - **Copper**: Supply issues due to incidents in DRC and Chile, with treatment and refining charges remaining negative [4] - **Iron Ore**: Marginal cost support highlighted, with the market able to absorb new supply from Simandou [4] - **Lithium**: Prices recovering from lows due to supply cuts in China [4] - **Gold**: Current windfall cash flows in the sector, while bulk commodities show subdued free cash flow [4] Market Sentiment - The end of downgrades in many commodities is seen as a positive sign for the sector [5] - The overall equity story for the sector is improving, with many companies showing resilience despite market challenges [5] Additional Insights - The revenue breakdown indicates that copper and iron ore are key revenue drivers, accounting for over 60% of aggregate revenues for major companies [13][15] - The report includes detailed financial metrics and projections for various companies, indicating a cautious but optimistic outlook for the mining sector [12]

Here are the latest moves in Warren Buffett's Berkshire Hathaway portfolio, including his new bets on Lennar (LEN), D.R. Horton (DHI), Nucor (NUE), and, most notably, UnitedHealth Group (UNH). https://t.co/c8nwjlEfnR ...