Looks like it is going to $4.40 today. That is the price they issued the new 50 million+ shares at the end of last month. Shorts are scrambling to cover their positions. More positive tariff news should send this to over $6.00 by the next earnings date in late July.
U.S. has an offer to buy some of its nearer term debt in the market. It looks like they are funding it with new debt that goes into 2021.This should buy them some time to recover. The 2018 debt will get just over par if accepted.
They really stopped the upward momentum. They did the same thing a couple of years ago when they bought severstal. We might have to wait till the July earnings for any upward movement.
How do you know that the new shares have been released? There were already 178 million shares outstanding. The average sales are around 10 million per day.
Didn't AK also issue new stock a few years ago when they bought Severstal? The stock was $10 then and it went to $8.00 right after the Severstal purchase.They currently list 178.3 million shares outstanding. With this new 52 million shares and the optional 7 million shares, they are adding around 34% more shares to the market. It will be interesting to see how much the stock price comes down. The AK bondholders might see some upside because of the paying off of some debt. It seems odd that it was $4.26 for a low on tuesday and shoots up to $5.23 today and then they make this announcement.
Their bonds due in 2020 are currently selling around $85.00 with a yield around 9.5%. They were in the mid $30 range a few months ago. They have been steadily moving up. Investors must believe in the company surviving this steel crisis, because the stock and bonds have gone up tremendously in the past 2 months.
Even a downgrade can't derail this stock. A good forecast when they release earnings at the end of the month will shoot this to over $5. Cars are selling and that is a large part of AK'S business. Should be in the $6 to $7 range by by the end of summer.
I'm hoping for a nice slow ride to $8 by the fall. Anyone short on this stock is taking a tremendous risk. Auto sales look good for 2016.