4Q Results for 3 Names I Follow: BP Plc (ADR) (BP), AK Steel Holding Corporation (AKS)

AK Steel is a different story

It’s almost purely a US bet and that’s the reason why I am long on both sides of the capital structure (debt and equity). The company is getting better and better. AK Steel not only has a $1.1 billion liquidity window, but also is investing for growth and to reduce its cost matrix (the company will have over $150 million in cost savings this year). This year will finally be a profitable one (I expect AKS to earn $0.20 per share in 2013 after its $0.50 per share loss in 2012) as a consequence of its growing presence in the resilient automotive market. In AK Steel’s case, the theme is growth and I think US macro fundamentals are poised to help the company and its management after many steps in the right direction.

BP, Arcelor Mittal and AK Steel are three companies I have followed closely for a few years now. After a lot of thinking I decided to make a move in two of these companies. In order to make a bet in Mittal I would like to see the strategy for its ailing European operations. I will keep a close eye into these three names. I hope I am not wrong. If I am, then I will be here to write about my mistakes.

The article 4Q Results for 3 Names I Follow. originally appeared on Fool.com and is written by Federico Zaldua.

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