Stelco Holdings Inc STZHF

TD Notes

[retiredcf]

By increasing Major Drilling to 4.0%, it becomes our second highest weighted position in the materials sector in our small-cap model portfolio after Stelco Holdings Inc. (STLC-T, portfolio weight 6.0%). We continue to hold Stelco at a high weight, given the strength in hot rolled steel prices (+9.0% over the past four weeks). At the same time, copper prices have declined 4.6% over the past four weeks, which has led the steel/copper ratio to multiyear highs (Exhibit 4). As detailed in our report earlier this week (LINK), we are less optimistic on copper. We favour Stelco over copper producers.

[fishcarrier]

Good information, Retired! A few notes. Please check if it's roughly correct. I assume TD's price mention is roughly a steel price of ~1500/ton to 1635. Those would be US prices, right? So ~$1800-1960? That would be approaching double the price Stelco got in Q1.  I would imagine that Stelco has almost used up all its tax credits from previous losses. So this time taxes would be

[retiredcf]

Unable to find a full TD report on STLC so can't confirm whether their steel prices are in Cdn or US$. GLTA

[dieter216]

Steel prices you mention are in US $. HRC is currently around $2,000cdn ton. Current steel pricing remains strong. Steel Commodity I'm involved in, Price going up another 8% July 1st. Thanks to everyone here sharing info. Cheers Dieter