Tree Island Steel Ltd T.TSL

3rd Quarter

[Stocker46]

Based on recent SP performance, investors were obviously expecting a brutal 3rd quarter.
While it was a drop from 3rd quarter 2021, they still managed an EPS of 28 cents per share & their 9 month ESP of $1.19 is 17 cents per share higher than the same period in 2021. (1.02 EPS)

For the month of November 2021, TSL traded at an average of over $5 ... The current SP of $3.55 is $1.45 lower. 

[Lawyerup]

Yup, probably the most undervalued stock out there.  Why I have been steadily adding when I can.  Add in the added another 2 cents to the regular dividend again.

[Stocker46]

Exactly. The extra 2 cents appears to be automatic now, giving them an effective dividend yield of 5.6%. By comparison here are the dividends of some major steel companies: Stelco 3.06% Algoma 3.08% ArcelorMittal 1.58% 

[mjh9413]

What I like is the clean balance sheet (now cleaner with debt down) and straightforward income statement but clearly subject to macro situation so sp lkely to be muted. eom

[Stocker46]

TSL investors never cease to amaze me. Guess I shouldn't be surprised. In the last few sessions: when the markets were down TSL was down, when the markets were up TSL was down. The unprecedented special dividend of $1.20 per share earlier this year is a distant memory.  Here's another TSL/DBM comparison now that 3rd quarter numbers are out. DBM earnings per share 2022: -1st Q  &

[pennydredful]

Logic  doesn,t  work  with  women  or  stocks . 

[auburn2]

Disingenuous post. "On March 2, 2022, the board of directors declared a regular quarterly dividend of three cents per share and an additional $1.20 per share as a special dividend on the issued and outstanding common shares of the company, both payable on April 14, 2022, to holders of record at the close of business on March 31, 2022." That's $1.20 subracted from the company

[Stocker46]

What exactly is your point auburn2 ? I'm comparing TSL performance for the 1st 9 months of 2022 vs the 1st 9 months of 2021 & the share prices in Nov/Dec 2022 vs the much higher share prices in 2021 despite a "better performance" in 2022. Are you saying that paying a $1.20 Special Dividend to your shareholders is a bad thing? As usual, you're not making any sense !

[Stocker46]

Noticed that auburn2 likes to throw out a negative post & then disappear, refusing to respond to a request for clarification . Talk about being disingenuous. In the mean time, the TSL/DBM comparison is to a point of absurdity. DBM is now at $7.08 vs TSL at $3.39. You can double TSL's share price & still be 30 cents short  .. & yet, TSL's EPS for the 1st 9 months of 2022

[pennydredful]

TSL  stock  lacks  liquidity  re  less  shares  outstanding  than  DBM  and   higher  %age  insider  ownership  . Their  line of products  seem to cover a less common use range of products. No analysts cover  this stock  and not sure if any quarterly conference calls. I will  give you their

[Northforce13]

TSL sells at a discount to net tangible book value. DBM's net tangible book value is... zero.  

[pennydredful]

that  tends   to happen  when a company makes  a lot  of acquisitions.  A manufacturer  like   TSL  needs more  fixed   assets   than  a distributer like  Doman. 

[Stocker46]

Hi Northforce13. Not coming up with zero for Doman (based on my understanding of Net Tangible Book Value) If you're using the comparative share prices in any of your calculations & saying TSL is currently selling their shares at a discount .. I most definitely agree. Would need specific calculations .. showing the numbers you're using.

[Northforce13]

Q3 2022 FS;  S/E 547 mil - 387 goodwill - 155 intangibles = 5 mil of tangible shareholder equity

[Stocker46]

Thanks Nortforce. Looks like we're doing the same calculation but the numbers on Sedar are a little different. I show $406M goodwill & $158M intangibles with S/E at $584M. for NTBV of $19M vs $5M.  For TSL, I come up with a Net Tangible Book Value of $131M. (or $4.63/share) Regardless, (as I see it) using this analysis indicates that TSL shares are significantly undervalued.

[Northforce13]

Youre doing it "wrong".  The S/E you are quoting is before cont surplus, foreign cur trans and accumulated deficit.  After which S/E is 547.  Something is wrong with your information source or your understanding of what to look at.

[Stocker46]

Just looking at Yayoo Finance. I believe the numbers you are using are from 2nd Q NOT 3rd Q. Take a look.

[Stocker46]

Make that Yahoo. You'll notice the S/E number (in total) for 3rd Q just happens to be approx. the same ($584M) as only the Common Share number in 2nd Q.