Not if this can earn $2.50 in 2011. In which case $20 share price might be appropriate.

The fact that AKS can turn a profit while X still losing money, means AKS should get a premium valuation. Maybe.

But I agree with your thinking somewhat. Don't steel stocks get very low PE's. I applied your logic from 2007-2008 and shorted this stock all the way from $18 to $50. NEver made a dime on the collapse. I was already blown out.