Why AK Steel (AKS) Stock Is Up Today

NEW YORK (TheStreet) -- Shares of AK Steel (AKS) rose 3.22% to $9.95 in morning trading Wednesday after the company announced it had completed its acquisition of Severstal North America's integrated steelmaking assets located in Dearborn, MI.

The company expects annual cost-based synergies from the acquisition of approximately $50 million, with approximately $25 million realized in 2015. AK Steel also expects the transaction to enhance credit and to be accretive to its earnings, "which will help create significant long-term value for the company, its employees, customers and shareholders."

The purchase also included a cokemaking facility and interests in three joint ventures that process flat-rolled steel products. AK Steel announced it paid $707 million in cash, which included $314 million for working capital.

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Separately, TheStreet Ratings team rates AK STEEL HOLDING CORP as a "sell" with a ratings score of D+. TheStreet Ratings Team has this to say about their recommendation:

"We rate AK STEEL HOLDING CORP (AKS) a SELL. This is driven by a few notable weaknesses, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its weak operating cash flow and poor profit margins."

Highlights from the analysis by TheStreet Ratings Team goes as follows:

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