Latrina buys PKX 35.91: In the case of Posco, we will be valuing the business based on its discounted future free cash flows to determine if there is a margin of safety.

The company's main global competitors include Nucor Corporation (NYSE: NUE ), Steel Dynamics (NASDAQ: STLD ), Tenaris (NYSE: TS ), U.S. The low level of institutional ownership should act as a future catalyst and provide demand as well. There are numerous catalysts over the coming years, such as spinoffs or outright sales of non-core assets, share repurchases, and the potential for special dividends from the sale of assets. So you are essentially getting a best-in-class, low-cost steel producer for free. The estimates for the sale of the non-core assets are worth the current market cap of the business.


Susannah:
CEO Kwon Oh-joon is focused on growing the core steel business and reducing leverage.

Jacqueline:
The new management team is much more shareholder friendly.

Veda:
Posco was previously known for ruining shareholder value, which still leaves a negative bias towards the company for many investors.

Shiloh:
This seems to be ignored at the moment, as the market is focused on all the intermittent negatives surrounding the company.

Zelma:
Pricing pressures and excess capacity have certainly put the pinch on the global steel industry.

Jenny:
This means the divestiture of non-core assets.

Jolene:
The new CEO, Kwon Oh-joon, is switching the business from a growth model to a company now focused on operational efficiency and profitability.

Coleen:
It's a conglomerate that produces revenues from commercial and residential property, a trading business, operation of power plants, and the distribution of energy.

Devin:
Pohang Iron & Steel (NYSE: PKX ), or Posco, is a Korean company engaged in the manufacture and distribution of steel products.

Jimmy:
The company's low-cost producer status should help it execute the transition over time.

Pohang Iron & Steel Co. (NYSE:PKX)
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