It hit another 52 week high didn't it? So it pulled back, so what. Let the story play out unless you are just trading the stock.
Looks like the market also likes Steel Dynamics acquisition of the other plant. Perhaps the market thinks that AKS and STLD are getting good assets at very good prices?
Wouldn't a buy out have made them a lot of money? Why selloff on the prospects of at least tripling your return?
I know it's old news, but any ideas why, besides they are idiots? Seems like the chip launch would have been known at that time. These firms usually know exactly what is going on at the companies they invest in.
Gaining about 3 million tons of capacity. Cost to be around $700 million. I have mixed views on this acquisition. First, how do they plan on financing this when they are highly leveraged to begin with? Is this where the stock offering comes in to play? Stock might take a hit in the short term, but it could be a positive for long term market cap growth and expansion. AKS is in the position where if they want to grow, they need to acquire other assets. I still believe that the long term outlook looks good for this company barring an economic collapse or recession that is beyond their control.
That would be nice, but nobody has a clue what they will report for earnings. New CEO, CFO, integrating new businesses. I have my doubts about this quarter's earnings. The conference call should be interesting. Hopefully there is more transparency than what Smith was giving out.
Then you should be buying about 500,000 shares. When you post a transaction confirmation for that, I may listen.
Couldn't agree more, cat. I am long 525 shares and look to pick up more on any 10% pullback (if it happens). If not, I will just keep re-investing dividends for many years to come.
The good news keeps coming. Unless there is a pullback in the overall market because of political or macro risks, AKS is setup to run to new 52 week highs.
Why would you want to short a stock that is under-valued compared to its peers in a market with improving fundamentals, GDP growth, and accommodative Fed policies? Seems to me, a cyclical stock like AKS would be one of the worst stocks to short in this type of environment. Cyclicals almost always outperform the market during these times.
Personally I think you have way too much money in one sector (materials). Coal and steel are too similar. Stocks typically go up and down in sectors. It looks good when things are going the right way, but if things go bad, they can go really bad and you are out a ton of money.
One company that has some exposure to the materials sector, but also has exposure to oil & gas is FCX. If you don't have exposure to oil & gas in your portfolio, you should! They also are a big time copper, gold, and minerals producer but have been investing heavily in oil & gas. They pay over a 3.25% dividend as well. For a long term investment, it is a no brainer, in my opinion.
Also check out PXLW. Company is extremely under-valued.
sulhaj, good to see you are still holding your shares.
History shows us that there are cycles within the steel industry that play out over time. I am of the belief that when the stock was down to $2 and $3 we were at the bottom of the cycle. That is when you need to get in to ride it up for big gains. Sure, you need certain things such as a rebounding economy and overall strength in manufacturing, but these things were recognizable with the Fed pumping money into the economy and keeping interest rates low.
There was so much bad news priced into steel stocks, that it was at the point that it couldn't get much worse. That is when you need to buy for the LONG TERM. I'm talking 3-5 years. That is how long these cycles normally play out. Why do you think they call these stocks cyclicals? Because they run in cycles. You need to let them play out OVER TIME.