Super Bowl 'Smash-It-Up' Trades

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Super Bowl Trade XI: United States Steel (X)

Pittsburgh company forged by fire in 2008, looks for better 2009

By Chris Johnson and Jon Lewis

You can't talk about the Steelers and the stock market without thinking about U.S. Steel (X).  The company's headquarters pierces the Pittsburgh skyline like the Steelers' defense pierces opposing offensive lines.

The U.S. steel industry has been dramatically affected by the global economic slowdown, as demand for autos, buildings and other steel-based products has declined rapidly.  As a result, X is now trading at $30 after hitting a high of almost $200 in June 2008.  That's an 85% decline in seven months.

But X has been trying to root out a bottom around $25 for the past three months.  From our perspective, the long-term potential for X is becoming more positive.  And for what it's worth, X gained 25% in the three months following the Steelers' last Super Bowl victory.

Buy U.S. Steel.(X)

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