US Steel (NYSE:X) has plunged since its 52-week high of $70.95 a share a couple of months ago, falling even further today after being removed from the "Conviction Buy List" of Goldman Sachs (NYSE:GS).
The major challenge for US Steel is the large exposure it has in Europe, which will cause it a lot of problems going forward, as there are no short-term answers there, and it's questionable whether the EU will survive in the current state it is in.
Add to that China tightening in order to prevent a property bubble there as they fight inflation, and you have a difficult situation for US Steel.
This isn't to say you can't or won't make money on them, as now they're at a cheap price, and could get cheaper. And even in those circumstances there's way to make some quick money.
But for long-term investors, this isn't a great buy at this time until they diversify their markets and better cover situations like these.
US Steel fell to $41.51, a $3.77 drop or 8.33 percent overall, as of 2:42 PM EDT.
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