Quick Win by the Algorithm: GGB exponential growth in steel industry
Quick Win by the Algorithm
On March 17, 2017, the I Know First algorithm had predicted a bullish forecast for Gerdau S.A. (GGB). It had a signal of 14.34 and a predictability of 0.71. The company reported gains of 196.94% in one year and therefore, a quick win by the algorithm.
Gerdau SA ADR (GGB), produces and commercialises steel products worldwide. The company operates through Brazil Business Operation, North America Business Operation, South America Business Operation, and Special Steel Business Operation segments.
Exactly one year has passed since Gerdau’s (GGB) share price rose exponentially from $1.63 to $3.94!
Gerdau’s international diversity helps to provide supports to its top line. Its array of product offerings include crude steel, slabs, blooms, billets and flat steel. As well as engaging in iron ore mining activities.
Additionally, Gerdau’s track record for disposing of loss-making assets/business, enables it to focus solely on the profitable ones. More recently, GGB announced plans to divest its business unit Premier Thermal Solutions, L.L.C. The terms of the deal are being kept under raps for now, although it is expected for the deal to close within the month ending April, 2017.
Specifically in the Brazilian market, any investment by the government in infrastructure will correlate to directly benefitting GGB, with demand for steel set to see a boost.
The company has made a commitment to its shareholders, paying dividends and interest on capital of over R$51.7 million in 2016.
This bullish forecast on GGB was sent to current I Know First subscribers on March 17th, 2017.
Before making any trading decisions, consult the latest forecast as the algorithm constantly updates predictions daily. While the algorithm can be used for intra-day trading, the predictability tends to become stronger with forecasts over longer time-horizons such as the 1-month, 3-month and 1-year forecasts.