Not Bullish on Steel
According to a filing with the Securities and Exchange Commission (SEC) Richard Abdoo, a board member at AK Steel (AKS), has purchased 12,500 shares of the company's stock at an average price of $3.95 per share. Abdoo had previously owned a little over 100,000 shares directly. His purchase also comes on the heels of a number of insider purchases in late November, generally at prices just under $4 per share.
The steel industry has been in a rut (AK's stock price is down 54%, year-to-date) as a relatively weak macro environment (particularly in Europe, though Chinese growth has been disappointing as well) has reduced demand. AK's beta is 2.1, signifying how reactive the stock price is to the broader market. We've also seen some insider activity in coal recently: While thermal coal is driven by demand from utilities, metallurgical coal is a key input to steel production. Taken together, it's possible that company insiders are seeing a strengthening global economy and therefore a better business environment....416 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
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