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Hello Anand,

MT is not for the faint of heart. There's still oversupply in the steel market (like there usually is) and we're not going to see a sustained rebound anytime soon. However, that's usually a better time to get into these types of stocks, since you can get a better price on them.

As far as MT's debt load, it's definitely a concern. Management has made it a priority to get that under control, even reducing the dividend to make sure that it can maintain an investment grade rating. We never like to see dividends get cut, but the commitment to reducing debt is a positive. Getting hammered on the credit rating would increase MT's borrowing costs and with profitable steel capacity growth projects harder to come by, I like the decision to delever.

We chose MT over others because we liked the mining business and MT's overall valuation. There might be others that are very well run like NUE, but I've always gravitated towards the cheaper but still decently run operators.

Other than MT, we also liked PKX and TX. Both are well run and also cheap, but PKX had too much exposure to South Korea and TX had too much exposure to Argentina for my taste.

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