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Steel Dynamics - STLD - close: 40.60 chg: +1.33 stop: 38.49

Company Description:
Steel Dynamics, Inc. is a mini-mill producer of steel products, including flat-rolled steel, structural steel, rail, special-bar-quality steel, merchant bars and light structural shapes. In addition, the company's New Millennium Building Systems subsidiary produces joists, girders, and decking for non- residential buildings. (source: company press release or website)

Why We Like It:
This is an aggressive, higher-risk play. STLD looks overbought, especially if you check out the weekly chart. Yet short-term we're seeing a bullish breakout from a three-week consolidation pattern. Technical indicators are turning bullish again and the sector displayed widespread strength today. We're going to suggest long positions on STLD with shares above $40.00. We'll place our stop under this week's low and the 10-dma. Our target is the $44.00-45.00 range. FYI: The P&F chart points to a $60 target. The latest (January) data puts short interest at 6% of the 82.5 million-share float.

Picked on February 21 at $40.60
Change since picked: + 0.00
Earnings Date 04/24/07 (unconfirmed)
Average Daily Volume: 1.6 million

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