OTCPK:STZHF - Post by User
Post by
extremeriskon Aug 13, 2019 9:24pm
59 Views
Post# 30025289
Volume miss Main cause of big quarter revenue drop
Volume miss Main cause of big quarter revenue dropDrop off from last year q2 mainly due to huge volume drop to 545 net tons from 748 net tons. Q2 was the best quarter for 2018. For 2017 volume was 501 net tons. MDA does not really explain why volumes dropped however they forecast remainder of year to be in line with 2018 where they will ship 1.3 million tons. Other important item is steel prices have firmed and are moving up now after consistent drop through q2.
Suspect that with headline news of big revenue drop stock price will drop but that will likely be low of year and great buying opportunity to play the upswing in this cyclical business.
Other interesting item is federal government giving stelco $50 million for research and development. Half grant and other half interest free loan that does not have to be paid till 2024. That’s a good deal.