Post by
fishcarrier on Sep 28, 2021 11:21am
Expected earnings
In Q. 2 Stelco shipped 679.000 tons of steel at $1292/ton yielding $4.28/sh.
I think it is reasonable for Stelco this quarter to ship the same tonnage, this time for $700/ton more, ie $1992. The extra revenue is pure gravy.
$700 x 679000 ton = $475,300,000. Divide that by the 77,315,265 shares, and you get $6.15.
Add the $6.15 to the $4.28 of Q. 2 and you get $10.43 a share. Looks like a very good quarter.
Steel is up this morning to $17.30 US. GLTA
Comment by
Jasonuw on Sep 28, 2021 9:26pm
Oops. I had mistead initially. Your option 1 is my option 4. Point still stands, if it is option 1 (or option 4) with a reduced lead time of now 6 weeks, Alan won't be able to predict Q1 unless he locks ins some futures contracts...which he said he wasn't going to do.
Comment by
fishcarrier on Sep 29, 2021 9:31am
You're right. I forgot about the taxes. If we even take off 1/3rd of what I suggested as extra income, then 67% of the extra 6.15 = 4.10. Add that to Q2's 4.28 and you get $8.38. I would be quite happy with that.