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United States Steel Corporation (X) Needs Transparency and Consistency

By U.S. News & World Report

United States Steel Corporation (NYSE: X) stock has been trending lower ever since the company reported a big second-quarter earnings beat on July 25. Despite some encouraging internal business developments under new CEO Dave Burritt, investors have been focused on comments from President Donald Trump related to an ongoing investigation into steel imports.

In a research note on Thursday, Barclays analyst Matthew Korn says Burritt got off to a strong start in the second quarter, and his leadership and transparency seem to have the company well-positioned for the future.

“Long term, X has the chance to gain investors’ goodwill by building on the improved transparency and ‘substance over style’ approach that Mr. Burritt appears to favor,” Korn says in the note. “It’s encouraging to see the additional detail on the asset revitalization program’s budget, time frame, project list and quantitative goals — details not seen under previous leadership.”

Despite the improvements that Korn noted, steel investors have been preoccupied with Trump’s ongoing investigation into whether or not he should exercise a rare power under Section 232 of the Trade Expansion Act of 1962 and restrict U.S. steel imports. Section 232 grants the president power to modify U.S. trade policy should the Commerce Secretary deem U.S. steel imports a threat to national security.

[See: 10 Skills the Best Investors Have.]

Domestic steel stocks, including U.S. Steel, AK Steel Holding Corp. ( AKS) and Nucor Corp. ( NUE), could see a major jump in steel prices if Trump restricts imports. However, recent comments by the president suggest that outcome is extremely unlikely, at least for now.

Despite admitting that U.S. steel companies are facing a “very unfair situation,” Trump told the Wall Street Journal on July 25 that import restrictions are not a priority for the administration. “We don’t want to do it at this moment,” he said.

Trump’s comments led Longbow Research analyst Chris Olin to downgrade U.S. Steel and AK Steel from “buy” to “neutral” on July 27. Olin said there is now just a 50 percent chance of a positive outcome from the Section 232 investigation.

“Over the past few days, industry contacts suggested the channel returned to business as usual, with customer orders and price expectations turning flattish,” Olin wrote.

[See: 9 Most-Loved Stocks in the Trump White House.]

For now, Korn says U.S. Steel stock is trading at a valuation discount to its peers. The best way for the company to whittle away that discount over time is to continue to set clear expectations and deliver on those goals.

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United States Steel Corporation (X) Needs Transparency and Consistency originally appeared on usnews.com

Don’t Settle for Student Loans to Pay for Online Education

By WTOP Staff
Online college programs are becoming a more popular choice for prospective students, with one study finding that more than 6 million students enrolled in at least one online course in fall 2015. The popularity of these courses can be attributed in part to their flexibility with working adults' schedules, students' ability to progress more quickly through online programs and, oftentimes, cheaper tuition. [See 10 low-cost online bachelor's programs for out-of-state students.]Online degrees can be beneficial to many college students, but some studies have shown online learners complete their programs at lower rates than students at traditional brick-and-mortar campuses. Individuals with student loans but no degree comprise two-thirds of defaulted borrowers. Though these numbers are not encouraging, just like for traditional programs, there are ways to reduce how much you'll need to borrow for an online program to ensure you won't become one of these statistics. Don't just settle on borrowing student loans to cover the whole cost of your program and living expenses. Instead, start thinking about how to cut costs and cover your balance in different ways, such as the following. -- Grants and scholarships: Even though you are taking an online course, you can still apply and receive grants and scholarships. But your first step should be to complete the Free Application for Federal Student Aid, commonly referred to as the FAFSA, which will allow you to receive a Pell Grant if your expected family contribution is low enough. The EFC criteria and award amounts are adjusted annually, but the 2017-2018 academic year awards range from $606 to $5,920, which could significantly lower the amount you borrow annually. Your next step is to apply for scholarships. You can start by checking online scholarship search engines, such as the Salt Scholarship Search, College Board's BigFuture and Peterson's. But don't forget to take advantage of local organizations and your school's financial aid office. Both may offer scholarships that you can't find with a national scholarship search. [Review these 10 sites to kick off your scholarship search.]For instance, organizations like the Elks Club, Knights of Columbus or the Rotary Club typically offer scholarships annually to local students. Just because you're going to school online doesn't mean you're ineligible. Visit your local library for scholarship listings, and ask around town. You might be surprised how many local organizations offer scholarships. While these scholarships typically aren't large, every little bit counts. Each dollar you receive in a scholarship is a dollar you don't have to borrow and pay interest on. -- Work-study: Another option for online students may be work-study awards. Not all students enrolled in online programs are eligible, but students at some schools -- including, for example, SUNY Empire State College and Liberty University -- are. Work-study awards are not given upfront like scholarships and grants. In most cases, they are an offer to earn up to the awarded amount if you secure an eligible work-study job. While there is a misconception that all work-study jobs must be on campus, students can work for off-campus, nonprofit or public employers as long as the work is in the public's interest. You may be able to work for a for-profit employer if the job is relevant to your course of study. No matter who the outside employer is, it will need to have an established agreement with your college for you to receive work-study funds. Remember, to be eligible for federal financial aid, you must be enrolled and pursuing a degree or certificate. If you're not working toward a credential, Pell Grants and work-study won't be option, but you may still be able to take advantage of private scholarships -- just be sure to read the eligibility criteria carefully. [Explore what to know about financial aid in online programs.]-- Pay as you go: One of the great benefits to enrolling online is the flexible schedule, which can allow you to complete your college coursework around your responsibilities. But prospective students often overlook using their part- or full-time job earnings as an option for paying for college. Almost 80 percent of college students in 2015 worked at least part time while attending classes, according to the National Center for Education Statistics. By budgeting and thinking strategically about your college costs, you can likely reduce your dependence on student loans by paying a portion out of pocket. Many -- but not all -- online programs are less expensive than traditional programs and often have shorter payment periods. Six, eight or 10 weeks are common course durations. Because of the frequency of payments in an online setting, you may be well-placed to pay as you go and possibly avoid borrowing altogether. Attending college online and avoiding student loans may be challenging, but if you are willing to put in the effort, you can limit the amount you need to borrow. More from U.S. News Q&A: Understanding Student Loan Discharge Eligibility Student Loan Refinancing Isn't Right for All Borrowers
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