Tree Island Steel Ltd TWIRF

WHO's SELLING ??

[Stocker46]

After 4th Quarter, TSL has a Price/Earnings ratio of under 2.
The Land Sale obviously had a significant effect (about $43 M in earnings net of Tax) .. but allowed them to pay off more debt, buy back a previously leased property, & pay out a rather huge special dividend.

Steel prices (in general) have been going higher & prices for TSL products (specifically) are expected to remain strong through 2022.

There's little doubt TSL's share price will continue to move higher between now and March 31  ..  the last day you will be required to own shares and still collect an almost 20% (at the current price of $6.15)  dividend of $1.20 per share. 

What I find somewhat amazing is that some shareholders are still SELLING shares prior to March 31 ??
Any thoughts?

[Aspertheoldman]

Many of those sellers (I, for one) bought a bundle of shares at below $2, for a 300% to 500% profit. They simply sell some shares (but not all). to equilibrate their portfolio. By the way, I did the same with  SUPREMEX (SXP-to).  I am heavily accumulating this one. I bought many at below $1.50. Just trust an old man !

[Stocker46]

Lot's of readers but no comments (unless they're from the ones I put on ignore shortly after starting to read this board .. the Reddeer and Leo & Harley gain). Added more twice sinse the Earnings & Special Dividend NR. Up to $6.46 this morning .. only 9 trading days left to get in on the Special Dividend.

[Stocker46]

Kind of feels like I'm talking to myself. Canadian steel companies have been on a tear sinse the end of February. Stelco's SP is up 30% and Algoma is up 35%. Tree Island is also up over 30% during the same period. High of $6.68 so far today but I suspect there are still alot of investors out there who are willing to pay more to get in on the special didvidend. 

[Mrguillaume]

Post dividend of $1.23, the current market cap is $155 million which is 3X 2022 EBITDA. Still extremely cheap! I wonder if the cash will help fund another buyout attempt by the 2 major shareholders.   Won’t be selling my shares but for some holding in a non-registered account they might be to have a capital gain rather than dividend inc.

[Stocker46]

Any predictions? I'll say we pass $7.30 by the end of next week.

[Stocker46]

Steel Stocks are taking a big hit today but I can't find any specific reason. TSL got to a high of $7.23 yesterday and is currently at $6.88 .. tempted to add a little more. Even at $7.50 the Price/Earnings ratio is at 2.4 .. rather low for a Company that expects prices for their products to remain strong through 2022.

[Stocker46]

Looks like some strange trading starting the day. A big ask at $6.50 which seems to make little sense 2 days before the Dividend date.  Perhapos Futura is attempting to pick up shares in the last 2 days  ... Shares whose dividends would go directly to Mr Doman at the expense of other shareholders ??

[Stocker46]

Strange indeed. When I checked my TD Investment account this am, they showed (pre the market open) the last trade for TSL at $5.72. TSX shows the closing trade from yesterday at $6.95. Mindboggling why anyone would be selling shares now under $6 plus. If you were going to sell, why wouldn't you have sold in the $6.50 to $7.23 range .. which was available over the past 7 trading days. My

[StratCap]

Ex-dividend Date is March 30 ( today ) so they take off the $1.23 divy from yesterday's close. $5.72 + $1.23 (combined divy) = $6.95 (yesterday's close price) You should get your $1.23 per share on April 14.  

[Stocker46]

Thanks StratCap. Just recently started changing my RSP over to dividend paying stocks. Ity's a little confusing. Doman's news release states they: "declared a regular quarterly dividend of $0.03 per share and an additional $1.20 per share as a special dividend on the issued and outstanding Common Shares of the Company, both payable on April 14, 2022 to holders of record at the close

[StratCap]

Yes, the 2 day settlement is where it gets confusing. I am not sure why if someone sold today and had fiully paid for shares why they wouldnt receive the dividend as today is the ex-dividend date and March 31 is the record date. Selling today would settle two days from now which would be April 1 and you would still be on record of owning the shares March 31 which is the as of date.  My

[Happilyretired]

If you owned the shares yesterday, you will get the dividend. If you sold those same shares today you will still get the dividend on April 14th. The person buying your shares today will not get the dividend, and that is why the price fell today

[Stocker46]

.. and thanks Happilyretired .. good to know.

[Stocker46]

Thanks SrratCap, it starting to make sense. I have a number of dividend paying stocks at present but wouldn't have likely understood exactly how this works if it wasn't for TSL .. when they make a $1.20 adjustment on a stock that last traded at $6.95, you tend to take notice. The TD agent commented that he's never seen a stock of this value paying such a large special dividend.

[StratCap]

Im taking my dividend and going to Mexico.