2024-04-23 01:11:37 ET
Summary
- Tenaris is a volatile commodity business that specializes in welded steel pipes for gas pipelines and is the world's largest player in steel tubing.
- The company's expansion plans include Middle Eastern and North American operations, focusing on improving demand planning and supply chain management.
- While Tenaris has seen record results and has a strong brand reputation, it faces competition, pricing declines, and the risk of domestic companies favoring domestic suppliers in certain markets.
Dear readers/followers,
It was about half a year ago that I wrote about Tenaris ( TS ) for the first time. I bought a small position in the business, and have held it since then. When I bought it, the company was below $34/share - now it's close to $38/share, and there's also extremely positive FX in the meantime, which has led to an outperformance of about 18% for my investment. The S&P500 is up around 13.29%. Without FX, the company is up around 12.5%, so Tenaris has underperformed.
Despite what we see here, this company is a volatile sort of commodity business. It works with welded steel pipes, among other things, for gas pipelines. 2022 was a very good year for the company - in that the company saw record results. However, the company hopes to move into things like wind farms to support the global energy transition....
Read the full article on Seeking Alpha
For further details see:
Tenaris: Underperformance, Now A "HOLD" (Rating Downgrade).