Seeking Alpha
  • David White
    AKS is likely a bankruptcy candidate. Paying over 50% of free cash flow for retirement benefits. Steel dumping on top of that -- death knell
    7/26/12
    Reply (9)
    • David White: I should note that I predicted the large Chinese steel dumping in articles last year and early this year.
      7/26/12
    • wigit5: What's is the explanation for the price increase on the spot steel??? (not arguing with your point I said the same thing...) Just concerned
      7/27/12
    • David White: There may be several reasons. AKS just announced it raised the price. the likely explanation is that it needs to make more money.
      7/27/12
    • David White: The other explanations may be all the talk of QE by both the ECB and the Fed., or it could be nickel prices are rising?
      7/27/12
    • David White: nickel reference: http://bit.ly/MbAOD4
      7/27/12
    • wigit5: Thanks David!
      7/27/12
    • Luckydad: David - it looks like AKS as a "bankruptcy candidate" is worth more to the market than not. And, I hear the Middletown works is ramping up.
      8/1/12
    • David White: Luckydad: These things take time to develop. However, it appears virtually certain that AKS will at some point have to go into bankruptcy
      8/1/12
    • David White: in order to renegotiate its pension benefits. They are too much of a strain on the company. The steel business isn't good either.
      8/1/12