Hot-rolled steel producer POSCO (NYSE:PKX) rolled out some hot quarterly results yesterday.

Actually, the Korean steelmaker, one of the world's largest, sells a full line of steel products. Company-dubbed "strategic products" sold particularly well this quarter -- automotive and electrical steel sales were both up more than 10% over the prior quarter. Total consolidated sales were up 6.4% over last quarter, and 37.6% over last year. Due to operating leverage and a large cost savings initiative, this translated to a 54.4% year-over-year boost to net income. Cost savings achieved in the first half of the year were roughly in line with an entire quarter's worth of corporate-level expenses, known in shorthand land as SG&A.

Earlier this month, I was tempted to chastise POSCO for its anti-takeover maneuvering. With results this strong, however, I can't fault the company for seeking to keep itself independent. I already noted POSCO's share swap with some "friendly" shareholders, but in addition to that, the firm has been buying back shares. Based on recent company statements, it's safe to assume these buybacks are ongoing.

Strong performance and share buybacks aren't the only factors pushing POSCO shares higher lately. Of the nearly 80% rise year to date, roughly half has come since Alcoa (NYSE:AA) made a hostile bid for its old buddy Alcan (NYSE:AL) in early May. Alcan, if you haven't followed the aluminum assimilation affair, is a long-since spun-off piece of Alcoa that has no interest in getting back together. And in case you really haven't been paying attention, the market-shaking news last week was that Rio Tinto (NYSE:RTP) rode into town on a white steed and topped Alcoa's bid with a huge all-cash offer.

M&A actually stands for mergers and acquisitions, not metals and alloys, but you wouldn't know it these days. All this dealmaking makes Mr. Market really enthusiastic about POSCO, an ultra-low-cost steelmaker that's still not so large that it can't be considered a takeover target by a giant like Arcelor Mittal (NYSE:MT). Hence the maneuvering.

This creates a difficult situation for cheapskate investors: The business is still fetching, but the shares are now fetching a lot more than they were a few months ago. You might want to wait for this steelmaker to roll cold for a while before pressing shares into your portfolio.

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Fool contributor Toby Shute has concluded that fetching is a pretty ugly word, considering that it's meant to describe something attractive. He doesn't own shares in any company mentioned. Feel free to cast a steely glance at The Motley Fool's disclosure policy.