41% of AK Steel's 2006 revenues were from sales to the U.S. automotive industry making the latter's success essential to that of AK Steel. Considering the recent turmoil in the U.S. auto industry, this may be of great concern to the U.S. steel industry as a whole.
AK Steel stocks have been particularly volatile this year within an already relatively unpredictable sector. Indeed, AKS stocks have closed up or down 8% or more on at least nine different instances in 2007. On August 16, 2007, the stock dropped 16% mid-day, only to rally 26% the next week. This may leave all but the most aggressive investor a bit queasy.