Check this out, I think $16 is still a bargain for AK STEEL, Why? Consider this they have an enterprise value of $2 Billion low BUT They have $6 BILLION REVENUE STREAM take that in for a minute thats 3 times the sales of the size of the company itself, this stock is worth AT LEAST $25 to $30 3 times the sales of the companys worth thats some good investing right there.
The real estate alone supports the market cap with out the inprovements,7000 acres of industrial zone. Over 7 million square feet under roof, what would the replacement cost be? 4 to 6 billion. Then there is the machinery and material on hand. Then we have a state of the art finish mill with-in 50 miles or so of 2 large car assembly plants, GM at Bowlingreen, Ky and Toyota at Princeton, Ind. This is just a few of the reasons I believe AK is way undervalued. "Steel is hot and the dollar is loosing value".
why does aks have a p/e 8-10x industry group. why can they only manage a modest profit during the best of times. why do they have chronic labor problems? no one would touch this company at these prices. i think the institutes have given the spec. the word to evacuate the insiders before the big dump starts.this latest rally in steel is totally fake. you wouldn't pump the price of something sky high before making an offer. did i miss anything?
what you are missing is that steel companies need to consolidate to survive. AK steel is a quality company that other steel companies want to buy. AK steel did get an offer and will get another offer! by the way large amount of the stock is being accumulated. watch closing of each day, last trade, large amount! check it out!