Stelco Holdings Inc T.STLC

why the stock price increase?

[trendstr]

According to Trading Economics,https://tradingeconomics.com/commodity/hrc-steel

HRC Steel increased 496 USD/T or 66.67% since the beginning of 2023

Also  1) Stelco is one of the most profitable steelmakers in North America 2) they have no debt 3) according to their CEO market conditions are looking more favourable now than they were in the fall of 2022 4) they are planning to buy back more of their shares 5) demand for steel is picking up in China and 6) some analysts predict that there will be more special dividends in the future.
Given the above it is likely that Stelco shares will continue to increase in value and should have a nice jump from where they are now at $58.90 before the next earnings release in May of 2023.

[Stocker46]

Ok gentlemen, good luck with your investments. Stelco's a good company that I made a nice profit on when I sold at just over $47 ... but at the current price, I'll pass. Too many other companies with better diviidends and (in my opinion) more opportuniy to  increase their share price.

[TimeScape]

Well, it will be interesting to see what the dividend yield turns out to be this year.  The current yield is about 2.8% plus they paid a special last year that works out to an additional 5% of the current share price, so 7.8% total.  Given the excess cash on the balance sheet, no debt, huge share buyback, and with steel pricing on the rebound as China opens up, I expect another special

[Stocker46]

Yes, the $3 Special Dividend was nice, but I don't see another one unless prices continue to rise. Maybe after next year end if they have a very good year. Don't see the SP moving much higher in the near term, but I've been wrong before. It moved up to just over $47 before the divy date. I sold just over $47 because I thought it would drop back to the low forties (or less) once the

[Stocker46]

Looks like Stelco & Algoma may be getting an unwarranted SP boost from the excellent earnings performances of Nucore & Steel Dynamics. Here's an interesting comparison: 4th Q Data: Nucore  EPS $4.89 (beat consensus by 71 cents per share)    SP performance since reporting - up 13.9% Steel Dynamics  EPS $4.37 (beat consensus by 77 cents per share)    SP

[trendstr]

It looks like it is not what they did but what they are going to do.

[Stocker46]

Never thought I'd be buying back in to Algoma & Stelco at these prices ... but Friday provided a little discount. Higher steel futures are one thing, but when steel companies start increasing their published prices & commenting on order books being filled out quickly, far before normal lead times ... then you know something good is happening. Hoping there 's just a time lag