Algoma SteelSee BNN. Jerome Hass of Lightwater partners talks about Algoma. Valuation is incredibly cheap, trading at 1 x EV/EBITDA. Price of Steel companies are low because present price of steel is not sustainable. However, steel still selling at robust levels, and futures are more sustaiable than market is pricing it.
Algoma Steel is 'phenomenally cheap': Portfolio manager
Algoma Steel is set to re-list on the TSX later this month. Jerome Hass, portfolio manager at Lightwater Partners, says there’s short-term opportunity here to buy a well-established Canadian steel mill and he sees 70 per cent upside for the stock. He says despite having some concerns that the steel sector is looking toppish, he says these market risks can easily be hedged out.