Anocot Steel (AKS); The Annual Cat Contest
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:
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