OTCPK:STZHF - Post by User
Comment by
extremeriskon Aug 13, 2021 9:01am
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Post# 33699809
RE:Share buyback
RE:Share buyback Very tough to buy back 13 percent of stock in traditional way. Wow what a great deal for Stelco! Kestebaum is second smartest guy in world. Musk is first.
shares o/S go from 89 to 77 million immediately improving all financial metrics per share. Seller does keep 7.6 million so can participate in future upside. Deal was designed foe bedrock to go under 10 percent ownership which triggers variety of things under security rules.
kestenbaum ownership grows to 16percent so he is in control now. I did find it odd on call when he said "when I bought this company". Bedrock was main shareholder yet Kestenbaum said I bought company.
ebitda per share for 2020 goes from $22 to $26 a share so at $47 stock price we are at less than 2 times ebitda.
should be 4 times at least based on peers. 4 times $26 produces upside of $104 per share.
kestenbaum is a clever operator. None of this normal course issuer bid that takes forever to buy back stock. Do it it one swoop. Go big or go home.
Huge upside still and everytime you check futures they continue up following same pattern seen in 2021 continuing into 2022.