Tonight the Yankees are on the road against Pittsburgh. If you want to make money in the stock market, go with the Steelmen.
The demand for steel from the developing nations in the Middle East, as well as China and India, and the demand for oil drilling rigs, has given the steel companies pricing power. The recent price increase in steel should substantially increase the earnings of Pittsburgh-based US Steel (X).
Better yet, buy Nucor Steel with doesn't come from Pittsburgh but which currently represents a better value at only 14.5 times current earnings and 9.5 times predicted earnings for 2009 without taking into account more price increases. Those low valuations still exist despite the fact that Nucor has doubled from its low in the past year. I expect it to double again over he next 12-18 months.
Today's down market has taken Nucor (NUE) and US Steel (X) down with it providing an excellent buying opportunity.
If,on the other hand, you want to make money in the sports book, go against the Steelmen tonight and take the Yankees -140.
The Pitcher for Pittsburgh, may be Malholm Boy, but Rob Crowne's Home Boy is Mussina for the Bronx Bombers. Furrther, the Pirates are obviously confused. Hasn't anybody told them in Pittshburgh that they're landlocked? What does being a Pirate have to do with Steel, unless it's those Pirate cutlasses they're thinking of? Expect the Yanks to take advantage of the Pirates' confusion and bomb 'em even in Pittsburgh.
For those of you for whom the above brilliant reasoning just isn't enough, here are some numbers. Mussina allows an average of just 3.33 runs on the road and 4.2 runs in Night games, compared to 3.6 runs per game allowed at home by Maholm and 4.6 runs in home games.
Those numbers don't represent huge differentials, but Mussina does have the edge. Add to that a small hitting edge for the Yankees with an average of .270 on the road vs. lefties while the Pirates hit .263 at home vs. righties.
The biggest edge for the Yankees, however, is in the bull pen. The Yankees available bull pen is significantly better in both hits and walks per 9 and ERA.
Take the Yankees -140 but don't pay up for it, and take Nucor up to $75 per share, but don't pay up for that either.
And if you want to double your money without waiting a year for Nucor to get there, then go to my Pick Page and click on my Best Baseball Play of the Day going off tonight. The pick and analysis is just $15.
DISCLOSURE: At the time of this writing the author owns common stock and options in Nucor and has no position in US Steel. The author has also previously bet the Yankees -140. These stock and game selections and analyses are for educational purposes only, they have not been tailored to your individual situation or financial condition, they do not constitute investment recommendations or advice, and you are strongly cautioned to do your own analysis and seek advice from your own financial advisor before making any investment decisions. All securities opinions are made without compensation of any kind.