RE:ASTL: Net Cash, Profitable and Stelco's CEO statementsMany investors also don't know the extent to which Stockfy will pump a company that he has recently bought stock in.
The drop in Cash this last quarter was due primarily to a stock buyback ($543 M) but due to the huge drop in earnings they dropped an additional $129 M.
Consensus earnings for the next Q is 16 cents per share or about $38 to $40 M (45% less than the $87.2 M just reported). Their Cash figure will likely drop further.
Stelco's CEO comments seem somewhat inconsistent.
Stelco's average selling price per net ton fell from $1,453 in 2nd Q to $1,162 in 3rd Q.
In their 3rd Q news release (Nov 15), Stelco's CFO stated “Accordingly, we are again reiterating our guidance for the fourth quarter that assumes that the lower prices and shorter lead-times being experienced currently, will fully impact results and prevail through the remainder of 2022".
Stelco's consensus earnings are projected to fall another 54% in 4th Q (vs 3rd Q) ... and further again in 1st Q 2023.
Steel Futures prices continue to fall.
As I've posted before, Algoma should do fine in the long term, assuming we can escape a lengthy recession in 2023.
In the short term ... not so much.
PS: I believe most investors are fully aware that a fire affecting Algoma's coal conveyors is (hopefuly) a one time event.