RE:Stelco sold Indeed Micro steel as a bright future with all of the infra. need.
It looks like some investors are betting that some of that $780 million that Fairfax will be receiving will go toward increasing or privatizing Ensign(ESI).
Recently(April 26th),Fairfax converted their debenture in Ensign for common shares
at a price of $1.75.
Fairfax is the second biggest shareholder of ESI behind Murray Edward(CNQ,Calgary Flames, Magellan aero....).
On June 10th, Fairfax increased once again their position by buying 7,787,600 shares
at a cost of $2.34 / shares
ESI has a lot lt debt. and is working on the reduction of it.
It as a book value of $7.22 and is trading presently at $2.51
I follow this company because i am a shareholder of one of their competitor(Akita witch is dead
money until we see an increase in drilling activity).
If Fairfax sees a bright futures for drilling stocks(LNG,and TMX increased capacity)
maybe, just maybe...
Prem Wasta as the reputation of buying assets at a distress prices.He as made some mistake ,
Blackberry is one of them.But then again we all do mistakes and on balance, Prem as a great
track record.He is not called the Oracle of the north for nothing.
Will be watching ESI more closely.
Today, all drilling stocks are up.Maybe my Akita investment will payoff.
But i am not holding my breath.It could take many many months but the value is there.
Like anything else in the stock market, it's always a matter of time when you buy good assets at a cheap price.
We know what happened to DRX.I started accumulation DRX in 2022.It took two years before
my investment paid off.
Time will tell...