Stelco Holdings Inc STZHF

Still a Steel ; make that a Steal

[forkliftguy]

I am not a big fan of chartists or  their supposed support levels .  I believe a stock moves on fundamentals (  Stelco gets an A for this )   and market conditions .  The two issues -  1) The Covid varient has not gone away and creates uncertanty   and  2 ) The automotive  chip shortage  ( I could vever figure that one out )  . If We can get by the market conditions , I think this stock will rise substantially .  I don't really see steel as cyclical  .  You need steel to build cars , pipelies , bridges , buildings  , almost every big structure has steel in it .  If you think there will be infrastructure spending , then buy Stelco .

[dieter216]

I agree with your general comment, yes Stelco at the moment and going into the 1st half of 2022 is an A, perhaps an A+, no debt, nice balance sheet, cash piling up, strong management team... Steel is cyclical, I'm in the steel biz, it is a commodity. Prices can drop just as fast as they rise. We are in the midst of a commodities "supercycle". They come along once every 20 years or so

[sunshine7]

Nice to have some input from someone more knowledgeable than most on this sector. STLC does seem to be tracking the price of steel so here is the million dollar question... what is the outlook for the price of steel in the coming month or 3?

[dieter216]

I'm in the steel biz, over 30 years. What is more important Guage is AMM scrap price, as the EAF mills all need scrap and its a better barometer. My commodity is long products, December scrap price is at high for 2021 and Mills I deal with have increased prices approx 8% for Dec. In short term prices will remain strong as Mills are still busy...

[Stocker46]

Stelco has rarely closed under $40 in the last 4 months. The current pullback seems a little strange coming off a recordbreaking quarter & an increased dividend ... if it goes much lower the Price/Earnings ratio will be under 3 ... absurd IMO for a company with no debt, piles of cash and another excellent quarter on the way. Will continue to buy more as it drops.

[CHECKMATE77]

As the market sells off everything sells off. Good companies and lousy companies . Don't look for a reason, it's just risk off 

[sunshine7]

Trading at 3x earnings with a wad of cash... won't stay here long IMO.

[extremerisk]

There forward earnings based on last quarter of 7.60 per share is tracking towards $32 a share taking a four quarter look forward.  If they end year with say 1 billion in cash or $13 a share cash and no debt you have a stock trading at 38 less 12 gives you $26 a share and earnings at $32 per share which gives you an amazing P/E of 0.8.    That is unsustainable so yes price will go

[ddogold]

Agreed . I finally became a shareholder last week .