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Tree Island Steel Ltd T.TSL

Alternate Symbol(s):  TWIRF

Tree Island Steel Ltd. is a Canada-based manufacturer and supplier of wire products for a range of applications. The Company, through its operating facilities in Canada and the United States, produces wire products for a diverse range of customers for industrial, residential construction, commercial construction and agricultural applications. The Company’s product offerings include galvanized wire, bright wire; an array of fasteners, including packaged, collated and bulk nails; stucco reinforcing products; concrete reinforcing mesh; fencing and other fabricated wire products. The Company markets its products under the Tree Island, Halsteel, TrueSpec, K-Lath, TI Wire, ToughStrand and ToughPanel brand names. The Company's subsidiary is Tree Island Wire (USA) Inc.


TSX:TSL - Post by User

Post by Stocker46on Feb 02, 2023 2:04pm
331 Views
Post# 35262875

3rd Q NET TANGIBLE BOOK VALUE

3rd Q NET TANGIBLE BOOK VALUEIt appears that NorthForce13 hasn't been on Stockhouse (or at least on the TSL board) for several days.

Regardless, it's clear that he used 2nd Q (at June 30) numbers in his calculations & not 3rd Q (at Sept 30) as he implied.
A quick recheck of his source (after my initial response) would have immediately made it obvious.


My calculations were based on Sedar's 3rd Q financials, but if you check Yahoo Finance (US site), their balance sheet format  shows a line titled "Tangible Book Value" so they actually calculate it for you.
The DBM number is $19.091M & the TSL number is $130.855M  (see links below).
The default view is Annual so you need to click Quarterly to see 09/30/2022.

https://finance.yahoo.com/quote/DBM.TO/balance-sheet?p=DBM.TO

https://finance.yahoo.com/quote/TSL.TO/balance-sheet?p=TSL.TO

The calculation is often used to "estimate" what shareholders would get back if  a company liquidated. In this case, TSL shareholders would receive about $4.63/share (current SP = $3.50), while DBM shareholders would receive $.22/share. (current SP=$7.40)
It, of course, gives no consideration to future earnings power or future dividends. Also, neither  company is in danger of liquidation, and all financial formulas & ratios have pros & cons depending on the industry & company in question.

It does, however, give a stark comparison that illustrates, in my opinion, the significant under valuation of TSL shares.
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