Lee Munson and Patrick Kirts analyze Nucor’s financial performance. Published on Seeking Alpha

Recently the financial media has made much to do about all things related to commodities. We doubt that most investors or advisors understand how to approach investing in commodities outside of the ever increasing and complex ETF’s sold to them. The historic volatility and recent popularity of the commodity market should make us ask a greater question: Why bother? At our firm we buy a lot of shares in a focused group of undervalued companies and take profits appropriately. We stole this idea from most of the billionaire investors on the planet and have yet to see a better way. A great way to approach this is the large unloved firm. Here we will focus on Nucor (NUE). Some will call it a ‘commodity’ or ‘basic material’ play. We are more concerned that it makes profits, has real assets, and is well managed. Profits fund dividends, real assets protect us from permanent losses, and good management should sustain the first two. Add to that the recent selling pressure that appears to come from our fair-weather hedge fund friends, and you may have something of value.

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