At Massif Capital one of the central questions we are always searching for the answer to, the price right, is this asset a good buy at this price.  This article was a review of AK Steel prior to 2015 Q4 results. We were seeking to understand if this steel company, trading at a 10-year low offered significant enough margin of safety for the risk, or phrased differently, was trading at a significant enough discount to its intrinsic value to justify the risk of it not reverting to its mean value.  Our conclusion prior to the release of Q4 2015 results was that it was not.

  • AKS may be currently trading at a ten-year low, but is it cheap enough to be considered a good buy?
  • Despite efforts at improvement of balance sheet are still stretched, exposure to the automotive sector is excessive.
  • Strategic missteps and poor stewardship by management have poorly positioned AKS for the future.

Please Follow the Link to the Full Article Published on SeekingAlpha: AK Steel: 10-Year Low But Still Expensive


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