HoldThatWinner (94.78)

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Anocot Steel (AKS); The Annual Cat Contest

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September 02, 2011 – Comments (6) | RELATED TICKERS: AKS

So it is time for the annual cat contest. With those of you who are unfamilar, every once and a while, I place two bowls of cat food out for my siamese. I label each of these bowls. One being, "buy" and the other reading "don't buy". The last time I tried this was this time last year with PCX at $10, and yes the cat nailed it so I thought I would give it another try.

So the focus is on AKSteel. AKS recently had problems with it's Butler Furnace last month. The furnace was damaged on July 5th, seen here:

http://www.prnewswire.com/news-releases/ak-steel-says-butler-pa-electric-furnace-was-damaged-in-incident-125038174.html

This along with the market correction caused the stock to get punished over the last 6 weeks or so. This is a problem, but one that could easily be seen ahead of time. There are a few questions to ask here. Will the contractor or manufacturer be liable or did AKS sign off on the furnace and will they have to cough up the money for all of the repairs? Also, there is the question of insurance. Will insurance cover the damages or once again, will AKS be charged for the repairs? The stock is sitting close to a multi-year low (at 8.35 as I type this).

Construction as many of you know, has not been booming recently. But the question is, will the turn be made?

Another note is that insiders loaded up last month according to the form 4.

So on August 22nd I put my cat to the test as I placed two bowls of cat food out, one labeled "Buy AKS" and the other labeled "Don't Buy AKS". The cat immidiately went for the "BUY AKS" Bowl.

Dislosure: Long AKS from $7.72 on August 22, 2011

6 Comments – Post Your Own

#1) On September 02, 2011 at 2:26 PM, TMFAleph1 (95.76) wrote:

Blue Horseshoe loves Anacott Steel.

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#2) On September 02, 2011 at 2:38 PM, TSIF (99.96) wrote:

Good entry....AKS really showed signs of a bounce back if the market can stabilize. I'm not putting any faith on the Feds with a QE3 type of play later this month or the President/Congress getting together on Jobs Creation....if we could get one or both then we'd see some market stability for the short term until more "numbers" come in. So I think AKS is a good choice to play with.

Are you sure, however, that your cats didn't think the label meant.

"BUY (A) (K)itty (S)almon

I know Siamese are smarter than other cats, but they may "over think" things...... ;)

Good luck

TSIF

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#3) On September 02, 2011 at 3:51 PM, lemoneater (86.26) wrote:

:) Meow!

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#4) On September 03, 2011 at 2:48 PM, HoldThatWinner (94.78) wrote:

Thanks TSIF, TMFBullnBear, and lemoneater

;)

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#5) On September 07, 2011 at 1:04 PM, NEMnyWtch (< 20) wrote:

I remember that!!!!! I was long PCX, and loading up, sold it in the spring between $25-$29. Your cat didn't pick it for me, but made me feel better at the time I sitting long at $10, and had started buying shares at around $22. I remember asking you if you used the same food in both bowls, in the interest of full disclosure. This is just too weird - here I sit again, long AKS (thanks to hubby, not my pick), again at a huge loss. If the same thing happens again, I will have to send a case of Fancy Feast to the Fool's headquarters with my gratitude, and a list of all holdings in my portfolio!

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#6) On September 13, 2011 at 10:28 PM, HoldThatWinner (94.78) wrote: