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Stelco Holdings Inc T.STLC

Alternate Symbol(s):  STZHF

Stelco Holdings Inc. is a Canada-based integrated and independent steelmaker with advanced integrated steelmaking facilities in North America. The Company is engaged in the production and sale of steel products. The Company produces flat-rolled value-added steels, including coated, cold-rolled, and hot-rolled steel products, as well as pig iron and metallurgical coke. It also provides gauge, crown, and shape control, as well as uniform through-coil mechanical properties. The Company’s steel products are supplied to customers in the steel service center, construction, automotive, energy, appliance, and pipe and tube industries across Canada and the United States. It operates from two facilities: Lake Erie Works (LEW) near Nanticoke, Ontario and Hamilton Works (HW) in Hamilton, Ontario.


TSX:STLC - Post by User

Comment by TimeScapeon Mar 02, 2023 6:00pm
59 Views
Post# 35316273

RE:RE:RE:RE:RE:RE:RE:analysts

RE:RE:RE:RE:RE:RE:RE:analystsI would say that the stock price a year ago was abnormally low because the company was still largely viewed as the business that had gone through bankrutcy before, and people didn't believe this was a new, vastly improved business.  Hence the fact that the stock was trading at only about 2 times earnings.  There still is a lot of pessimism about Stelco because of past failures, and it is still a "show me" story.  As they continue to demonstrate that their profitabliliy is vastly improved compared to previous iterations of Stelco, there will be more and more believers.  Obviously the stock is never going to get a high p/e multiple because steel pricing is so volatile, but I think we are gradually seeing a more reasonable multiple for the stock price.  If they can earn $10-$15 a share this year, a 6 times multiple gets it to $60-$90.  At 8 times, you'd get to $80-$120.   
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