Stelco Holdings Inc T.STLC

RE:I'm confused

[geosan0]

For those who did a head scratch this morning upon seeing the news release you are not alone.

Then looking at the price reaction, all I could say is good, no GREAT move Alan!!!

Stelco is putting out there that it is willing to acquire 10% of its float for less than 1/3 of what I expect cash flow to be in the 4th quarter.  Drop in the bucket to make news and shine some spotlight on the stock.  Again, GREAT move.

If the stock market experiences a hiccup over the next 30 days, I truly expect all the nervous hands to take advantage of the buyback to cash out at a guaranteed floor.  For those looking at this logically, the company right now is a cash flow beast and you are getting hedge fund management at cyclical stock valuations.  Take advantage of this opportunity to back a winner.

I believe that based on what others have posted on what US steel companies are projecting as 4th quarter earnings that our 4th quarter will be the best in the company's history.  Having said that, I do not expect 2022 to best the results of 2021 but if we even come close we will be trading at close to cash value come this time next year.

I'm willing to hold and hope we close the gap with our less efficient US counterparts.  On an EPS basis we compare favorably with Nucor at about 1/3 of their valuation (on a per share basis).  I'm hoping for about 70%-80% of the Nucor valuation, so looking for about $70-$80 CDN per share.

GLTA