Two Cheap Steel Stocks (AKS, MT)

The market seems to be offering some decent values in the basic materials sector. Value investors may want to take a look at two steel companies. Shares of AK Steel (AKS) have dropped to below $14 a share and Mittal Steel (MT) has dropped to $28. Although the economic recovery may be tepid; any type of global recovery will lead to a rebound in metal prices. A rise in metal prices is a boost to the bottom line of steel companies. Mittal is one of the world's largest steelmakers and trades at just 7 times next year's earnings. AK Steel is a riskier play due to limited pricing power. But at just 7.5 times 2011's earnings, investors may find themselves richly rewarded for their risk taking. Learn how to find the best stocks to trade each day in our 70 page E-Book and 90 minute online video for free.