Post by
extremerisk on May 30, 2021 10:28am
Steel prices stay elevated
For q1 Stelco did about 200 million ebitda on price of steel of 959. For q2 . Q3 and q4 average is around $1500 so one can see how you get to 2 billion ebitda for 2021. What's interesting is futures out to March 2022 is showing 1110. Looks to me like with a 1 1/2 year shutdown in the economy. Never happen sees before there is tremendous demand combined with zero interest. Don't see catalyst to move price down too much for next three year anyway. 2021 2022 and 2023 should be banner years for steel industry and could extend further into the decade.
just ebitda for 2021 is $22 a share and stock trades at $33. I think this is positioned well for next 3-5 years. Will be buying more of stelco.
I hope they don't do special dividend and just buy back stock. Dividend has immediate tax consequences which would be nice to avoid.