Tree Island Steel Ltd TWIRF

2nd Quarter

[Stocker46]

Another impressive quarter with EPS of 46 cents. (91 cents for the 1st six months).
Based on trading over the last several weeks, this is not what most investors were expecting ... price dropped to under $4 from a high of $7.23 (prompted by the $1.20 per share special dividend)

They continue to attain higher revenues supported by high product prices.
Let's see how the market reacts tomorrow.

[Stocker46]

Wow .. too early (& too little volume) for any predictions .. but Tsl currenly down 2 cents ??? They made 55 cents per share in the 1st 6 mths of 2021 and in the following 2 months (after posting 2nd Q financials) they traded much higher hitting highs of 4.85.  With 91 cents per share in the 1st six mths of 2022, we're barely over $4. Current price/earnings ratio is 1.25. Just put

[Aspertheoldman]

They should increase the dividend. 2 cents extra is quite low considering their results

[Mrguillaume]

They need money to relocate their US manufacturing site next year.

[Stocker46]

Why (& when) would they be relocating their US Operations?

[Mrguillaume]

Their MDA say "Management is reviewing the options for relocation of the operations" since the sale last year. A 2 year lease was signed. The buyer, Newcastle is a developer of industrial parks and I believe they purchased the neighbouring property in Etiwanda from CMC also. But no official word yet from TSL.

[Stocker46]

Thanks Mrguillaume, I missed that in the MD&A .. appreciate the clarification.

[Stocker46]

Somewhat mindboggling. TSL is currently at $3.87 The trailing 12 mth EPS will now move to $3.45 ... making the current Price/earnings ratio 1.1. We can expect some wild changes in the shareprice with so little volume .. which could provide some great buying opportunities TSL only bought back 8,539 shares in the 1st 6 months of 2022 (average of $3.95).  Hopefully they'll be more active

[Stocker46]

I see the TSX has finally revised their TSL page to reflect the $3.45 EPS and P/E ratio of 1.1. Have to say, in all my years of investing, I've yet to see a company that makes consistent profits with a P/E as low as 1.1.