return of capital event After the quarterly results came out in August I was a bit disapointed and I haven't paid too much attention to the stock price. I have been wondering though if Stelco would return any of their money in the bank (over a billion dollars) and continued earnings to shareholder's. Then I read this analysis from August 11, 2023 from my TD Webbroker account,
11:21 AM EDT, 08/11/2023 (MT Newswires) -- Stifel GMP on Friday maintained its hold rating on the shares of Stelco Holdings (STLC.TO) while cutting its price target to C$37.00 from C$46.00 after the steelmaker reported weaker than expected second-quarter results.
"Stelco's cost structure is likely to be higher than previously anticipated, resulting in 2023E cost per ton increasing 13.1% and 2024E increasing 5.5%. This significantly impinges on EBITDA margins, resulting in 2023E EBITDA falling 38% to $443 mm and 2024E EBITDA falling 25.3% to $412 mm. The stock is effectively fully valued on 2024E EV/EBITDA at 4.9x. Moreover, there could be additional estimate reductions if a Big 3 auto strike occurs and HRC prices fall as a result. Positively, we still expect some sort of return of capital event occurring during the remainder of 2023E, with capacity of $300-400 mm. We are moving our target price to $37.00/sh from $46.00/sh. We retain our HOLD rating," analyst Ian Gillies wrote.
(MT Newswires covers equity, commodity and economic research from major banks and research firms in North America, Asia and Europe. Research providers may contact us here: https://www.mtnewswires.com/contact-us)
Price: 38.60, Change: -0.11, Percent Change: -0.28
Could the return of capital mentioned above be a special dividend announcement in November? Another $3/share would be really nice.
Hold on and GLTA.