Nucor Moved to Sell
We had a good run in steel and steel products manufacturer Nucor Corp. (NUE), America’s largest and most diverse steel maker. Unfortunately, however, that run has come to an end and I now recommend selling our remaining position in the stock.
We initially purchased NUE on August 3 after it reported a 103% year-over-year revenue increase for Q2 while net earnings hit a quarterly record. Shares of the steel and steel products manufacturer were up decisively by August 27, and we took partial profits at that time. We also raised the stop loss to slightly under 110 where it has remained in place ever since.
Monday’s downside move in NUE (on no news in particular) violated the 110 stop to take us completely out of the position. I’m sure we’ll get another opportunity to buy into this otherwise attractive company but given the above-normal volatility in the major steel stocks right now I believe a capital preservation approach is best. SELL.