Distribution Strategy of AK Steel Holding
AK Steel Corporation is an American steel company whose predecessor, Armco, was founded in 1899 in Middletown, Ohio. Today, the company's corporate headquarters is situated in West Chester, Ohio, (a suburb of Cincinnati) after having moved from Middletown, Ohio, in August 2007. AK Steel's main products are carbon, stainless and electrical steels, cold rolled and aluminium coated stainless steel for automakers. One of Armco's best-known products may be the crash barriers installed around many auto-racing tracks, particularly in Formula One. These barriers are commonly called "Armco". Another product is bent corrugated steel panels that can be bolted together to make culverts. These are known as "Armco culverts".
Distribution Strategy
The stock is up 30% so far in Q2, on word of a solid Q1 earnings report (4/22) and several successful price increases/surcharge levies. The firm said that soaring global steel prices and favorable labor contracts have enabled it to boost profits beyond expectations. Analysts have pointed to expansion in developing economies and historically low levels of inventory as the factors fueling demand.
The news has kept AKS shares cycling through a positive ten-week trading channel. The price is rebounding from the base of that channel, suggesting the potential for a rise back toward the top.
Brokers recommend the shares with eight "holds" and one "sell". Analysts see a 20% average annual growth rate, through the next five years. The AKS PEG ratio (0.93), Price to Cash Flow ratio (12.48), EPS Growth rate (60.71%), Return on Assets (8.54%), Return on Investment (10.63%), Return on Equity (52.18%) and Revenue per Employee ($1.03M) compare favorably with industry, sector and S&P 500 averages. Institutional investors hold about 80% of the outstanding shares. Over the past 52 weeks, the stock has traded between $27.90 and $73.07. A stop-loss of $61.50 looks good here.
AK's Principal Divisions are AK Steel Corporation; Sawhill Tubular Products; Douglas Dynamics L.L.C.; Greens Port Industrial Park.
Its Principal Competitors are Bethlehem Steel Corp.; The LTV Corporation; USX-U.S. Steel Group.
AK Steel Corporation is an American steel company whose predecessor, Armco, was founded in 1899 in Middletown, Ohio. Today, the company's corporate headquarters is situated in West Chester, Ohio, (a suburb of Cincinnati) after having moved from Middletown, Ohio, in August 2007. AK Steel's main products are carbon, stainless and electrical steels, cold rolled and aluminium coated stainless steel for automakers. One of Armco's best-known products may be the crash barriers installed around many auto-racing tracks, particularly in Formula One. These barriers are commonly called "Armco". Another product is bent corrugated steel panels that can be bolted together to make culverts. These are known as "Armco culverts".
Distribution Strategy
The stock is up 30% so far in Q2, on word of a solid Q1 earnings report (4/22) and several successful price increases/surcharge levies. The firm said that soaring global steel prices and favorable labor contracts have enabled it to boost profits beyond expectations. Analysts have pointed to expansion in developing economies and historically low levels of inventory as the factors fueling demand.
The news has kept AKS shares cycling through a positive ten-week trading channel. The price is rebounding from the base of that channel, suggesting the potential for a rise back toward the top.
Brokers recommend the shares with eight "holds" and one "sell". Analysts see a 20% average annual growth rate, through the next five years. The AKS PEG ratio (0.93), Price to Cash Flow ratio (12.48), EPS Growth rate (60.71%), Return on Assets (8.54%), Return on Investment (10.63%), Return on Equity (52.18%) and Revenue per Employee ($1.03M) compare favorably with industry, sector and S&P 500 averages. Institutional investors hold about 80% of the outstanding shares. Over the past 52 weeks, the stock has traded between $27.90 and $73.07. A stop-loss of $61.50 looks good here.
AK's Principal Divisions are AK Steel Corporation; Sawhill Tubular Products; Douglas Dynamics L.L.C.; Greens Port Industrial Park.
Its Principal Competitors are Bethlehem Steel Corp.; The LTV Corporation; USX-U.S. Steel Group.
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