For as much as AK Steel (AKS) was a winner for my 4 stocks to buy in 2009, the stock has been a huge bust for 2010 – thankfully it is not part of my 4 stocks for 2010.
Ultimately higher ore prices have put a clamp on the profit margin for the US based steel company. That being said, sometimes there are just attractive looking buys you have to take part of, bring in evidence A…
The AK Steel chart below pretty much sums it up. The stock has been beaten down, seems to have found a point of support, and looks like it could run higher. Obviously, that all goes bust with a break below the support (blue line).
Sure it is a risk, but with a great stop point in place ($12.50-ish), the risk is manageable compared to the profit, which could be a year maker.