We have very high inventories in the steel business, including mucho Chinese dumping, but Nucor (NUE) is on the move. So is AK Steel (AKS). Could be stimulus at last hitting?

Buy - Price 17.08 on Oct. 27
by Standard & Poor's Equity Research

We're raising our recommendation to Buy from Sell...based on valuation. AKS posted 3Q earnings per share of 6 cents, versus EPS of $1.67 on a 52% sales decline, better than our 4-cent-loss estimate. We're narrowing our '09 loss estimate to 83 cents from 89 cents...and increasing our '10 estimate to $1.63, from $1.35, assuming higher shipment volume, well-controlled costs, and a more favorable product mix. We're raising our target to 22 from 17, to reflect our revised '10 estimate. On our price/earnings projection for '10, AKS would trade more in line with the P/E we apply to peers. Market cap: $1.8 billion.

Many industry analysts think Nucor (NUE), AK Steel (AKS), ArcelorMittal (MT) and other steel companies are better buys than U.S. Steel these days.

Buy between 14 and 16

Optimum Growth

Four steel companies made our list: US. Steel (X), AK Steel Holdings (AKS), Allegheny Technologies (ATI) and Nucor (NUE). Shares of U.S. Steel and AK Steel were the worst performers for the past year, down about 72% and 67%, respectively, as the industry slashed production. Both companies and Nucor could lose money this year but see big gains in profits in 2010.

want to be in this sector

I remember when AK Steel (AKS) was going to be acquired in the $60s. Now it is at $6.

From a recent Mad Money show:"I don't like the steel companies right here, particularly that one. I do like Nucor (NUE) if it comes to the 20s."

From a recent Mad Money show:"I don't like the steel companies right here, particularly that one. I do like Nucor (NUE) if it comes to the 20s."

Always mistiming u as well!

inconsistant

About 12.5% of this stock is short. The shorts are probably right, just their timing is off because of the sector effect. Looking at the lack of earnings and the massive debt and the ugly p/e ratio, ownership of ak could set you up for a nasty loss. Take profits, if you have them, when this sector goes out of favor AKS may be the 1st to fall.