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Two Ways: Deutsche Bank Upgrades AK Steel

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Strengthen your portfolio in good times and bad.

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This morning, Deutsche Bank upgraded steel producer AK Steel (AKS) from "Hold" to "Buy" on recent share price weakness and valuation.

The firm said the move was done to reflect a more positive outlook for its specialty business. Deutsche Bank also said it could also be a possible takeover target given its size, corporate structure, and market position.

But the firm said key risks to the rating were input and operating costs, excess global capacity, global steel prices, as well as exchange rates. It raised its price target from $19.50 to $22.50.

From the Bull Pen: Bulls can consider the steel ETF (SLX) instead. It's been one of the best performers year-to-date gaining 86%. For the passive investor, one can start an initial position here. A sell stop can be set below defined support near $49.

From the Bear Cave
: If you think a correction is at hand and are bearish on steel stocks, consider U.S. Steel (X). One can fade (read: sell) the rally into its 20-day moving average (currently 46.17) and set a buy stop above that level.

A Quick Check Around the World


Asian trading closed with the Nikkei 1.87%, India -1.19%, Hang Seng 0.03%, Shanghai 4.76%, and Taiwan 0.91%.

Across the pond, we see the FTSE -0.09%, CAC -0.28%, DAX -0.19%

As of 7:55 a.m. EST, S&P Futures are trading -1.75 to 1062.00 and Nasdaq futures are -5.50 to 1711.00.

A Look at Commodities

Over in commodities, crude oil is -0.33 to 71.36 while gold is -6.30 to 1050.00 this morning. Silver is -0.15 to 17.66 and copper -2.850 to 287.00.

The dollar index is +0.0750 to 76.2050.

On the Radar

Economics

08:30 Trade Balance (-32.9 bln cons.)

Alright, Minyans. Good luck and have a great weekend!
No positions in stocks mentioned.

The information on this website solely reflects the analysis of or opinion about the performance of securities and financial markets by the writers whose articles appear on the site. The views expressed by the writers are not necessarily the views of Minyanville Media, Inc. or members of its management. Nothing contained on the website is intended to constitute a recommendation or advice addressed to an individual investor or category of investors to purchase, sell or hold any security, or to take any action with respect to the prospective movement of the securities markets or to solicit the purchase or sale of any security. Any investment decisions must be made by the reader either individually or in consultation with his or her investment professional. Minyanville writers and staff may trade or hold positions in securities that are discussed in articles appearing on the website. Writers of articles are required to disclose whether they have a position in any stock or fund discussed in an article, but are not permitted to disclose the size or direction of the position. Nothing on this website is intended to solicit business of any kind for a writer's business or fund. Minyanville management and staff as well as contributing writers will not respond to emails or other communications requesting investment advice.

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