Like Paul McCartney, ArcelorMittal has paid the price for bad marriages (MT, TX, PKX)

It was a great last month for a terrible year for ArcelorMittal (MT, quote), the world’s biggest steel maker. For 2011, ArcelorMittal (MT), based in Europe but an Indian company for all practical purposes, is off by more than 50%.  But, for the last month, it has risen by over 20%.

Other foreign steel companies such as Ternium SA (TX, quote) of Brazil and POSCO (PKX, quote) of South Korea are up, too. 

But to become the largest steel producer in the world, ArcelorMittal embarked on an acquisition spree that is now penalizing the shareholders who are begging for a split.

Earnings have not kept up with the acquisition, with a decline on a quarter-by-quarter basis.  Over the last five years, earnings growth for MT is down more than 15%.  

But the stock has rebounded.  The price-to-earnings ratio is 13.39.  The forward price-to-earnings ratio is just 7.17.  The price-to-book ratio is 0.48.  The price-to-sales ratio is 0.31.  With shares now around $18.35, the mean analyst target price for ArcelorMittal (MT) over the next year is $32.19. 

The potential of Arcelor has been detailed in articles on  A dividend of more than 4%, better than that offered by Ternium SA (TX) or POSCO (PKX) pays — simply for the shareholder to wait for the stock price to rebound.

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