RE:RE:RE:Trevor Rose's Insights - Don't Buy HavingFun - (9/24/2024 11:42:00 AM) RE:RE:Trevor Rose's Insights - Don't Buy
company was cash rich post covid. stock buy backs, high costs, cash burn, issue debt over 9%. Looks like the spac investors are screwing this company. I guess the executive let it happen
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- ASTL was CASH RICH since HRC and PLATE prices WERE HIGH and VERY PROFITABLE {MARGIN RICH}
- HRC prices are NOW DOWN to USD 785 per ton and INPUT COSTS (met coal) are WAY UP SQUEEZING MARGINS DRASTICALLY
- on top of that, there was a MAJOR ACCIDENT in January 2024 that REALLY HURT the company and FORCED THEM to BORROW USD 350M at HIGH INTEREST RATES to PROTECT THEM AGAINST BK
- however, ASTL is BACK ON TRACK with NEW HIGH-QUALITY HIGH-PERFORMANCE MODERNIZED steel plate mill {ONLY producer in Canada} and IMPROVING HRC and plate prices
- they are DUE for MAJOR INSURANCE PAYMENTS totally OVER C$ 100 million
- MOST IMPORTANT of ALL, the 2 EAFs are NEARING CONSTRUCTION COMPLETION and ONE of them will BECOME OPERATIONAL WITHIN 3 MONTHS at BREAK IN CAPACITY
- so your NARRATIVE is COMPLETELY OFF BASE
z173