Stelco Holdings Inc STZHF

Alan is sandbagging

[SleepingGiant64]

This is so obvious.

1) Stelco wants to buy back 10% of the float
2) They have major cash on the balance sheet
3) The SIB tops out at $37 and shares are trading at $41

So what do you do? Sandbag.

Alan owns 11.2% of the company, worth $318m. He's a permabull on steel and the company. And not only does he make the announcement with a vague press release, he schedules an appearance on BNN immediately afterwards to talk down the shares.

Gimme a break. They're not getting calls in the last week of December with frightened customers (who have desperately needed steel for a year) who suddenly don't have end users.

For sure there are some omicron impacts but this is an incredible opportunity to buy shares. The company is going to make $20 this year and there's now a very good chane they take out that 10% of shares.

This is a masterstroke from the CEO and taking out 10% of the float at $37 or lower will be sensational when shares are trading at $100 and they're paying out $5 in dividends a year.

[extremerisk]

Very well said Sleepinggiant.  I have similiar thoughts but have not added to my position just yet.  Buyback is 250 million and at $37 that's almost 7 million shares to buy back.  It's happening today with over a million now traded.  I would enter again when we get close to 7 million to buy back. like I said before don't go into a poker game with Kestenbaum.  

[SleepingGiant64]

Thanks! One thing, it's an SIB so the time doesn't and volume doesn't matter. It will all be done on Jan 26 (or not). https://investors.stelco.com/2021-12-21-Stelco-Holdings-Inc-Announces-Intention-to-Commence-Substantial-Issuer-Bid

[Bamsmba]

Sleeping Giant and Extreme Risk... yep... you guys are right: He is sandbagging... and people are buying it.  I just saw Alan talking on BNN.  He compared the current situation to the start of the pandemic and the Financial Crisis which is completely ridiculous! They are still selling lots of steel at good prices, have excess cash and land... and now an interest in sports teams to boot!