Algoma Central Corp T.ALC

Stephen Takacsy - BNN - DON'T BUY

[Possibleidiot01]

DON'T BUY

Algoma Central Corp.(ALC-T)

12/06/2024

 

Owns lots of ships on the Great Lakes and trans-ocean. Very capital intensive, renewing its fleet, spending 100s of millions of dollars. Economically cyclical. In Q1, usually loses money; this year, lost less. Cautious 2024 outlook. Illiquid, trades almost by appointment.

Note that there are some convertible shares coming on the market at the end of this month, so there may be some shares on the market as a result which might depress the stock price.

Transportation

 

$14.210

Not owned

[Thor16]

LOL

[RamaMark]

Takasy has been wrong many times.(Diamon Estates) etc. This will probably be taken private in the next couple of years.

[dangood]

I have been in and out of this company for 20 years. At a P/E of under 8 it screams bargain. Below book; buying back shares; well run; paying down their debt - or getting rid of it. Sounds lik a looser to me. The only problem is and has been liquidity. So the big boys don't want it. As mentioned, it should not be a public company. but it is. So clip the coupons, enjoy a special dividend every

[Northforce13]

They added 65 mil of high cost short term debt in Q1 They damaged BV/Share by issuing shares at 14.10 Selling shares at 14.10 when book value is > 20 is not good 1) obviously diminishes BV/share.  2) Indicates either the company is quite tight for cash since it has opted to do this or/and management places little value on BV/share destruction.  Some median combination of both. Were

[Thor16]

The debentures....

[RamaMark]

Takacsy has been wrong plenty of times.

[Tim2Agami]

But maybe not this time

[Thor16]

why?

[Tim2Agami]

Labour disruptions in the rail lines have been predicted for months -- now come to pass. Grain, oil, potash, ore other bulk rail shipments to ports dead in the water.  Little to ship until the rails roll again. 

[Thor16]

So you are suggesting buy on short term weakness? Or panic sell based on something that doesn't affect the long term fundamentals of the company in any way and lock in some losses?

[Tim2Agami]

The practice has been to adhere to proposition (a) But that was back in the 2020's in assembling the current holdings in the portfolio.  However, I would hardly call the extended period of "weakness" since the end of 2022 anything but "short term", or offering any similar opportunities to add, even if it tests the $14 level again.

[Thor16]

You realize the company has paid out substantial special dividends on top of its current share price?  And recent share price movement is due to debenture conversion? Perhaps try looking at total return and you may be surprised.  Are you a shareholder?

[Tim2Agami]

If you will have read my post more carefully, you will have noted that I have been a long time shareholder and added to my position "on weakness" in the early 2020's. But now since the account standings are in the five figures of shareholdings, I have not been adding any more since. Of course, also since then I am aware of (and received) the "substantial special dividends"

[Thor16]

ok, sell it.

[Tim2Agami]

Why?

[Thor16]

Right?

[Tim2Agami]

This is not an answer to the question "why" concerning your recent recommendation to sell ACL. In June, Takacsy on BNN said "Don't Buy".  Unlike your advice, he did not say "Sell".  Why do you disagree with his analysis or others like that of Northforce13, and now fixate on selling the stock? 

[Thor16]

Huh?