Bruce Murray Stelco Holdings Inc. STLC-T HOLD Aug 30, 2021

He doesn't own any steel. Company has been dramatically cleaned up. Virtually debt-free. Risk of financial distress almost totally off the table. Difficult earnings comparisons for next 2 years with windfall banner profits in 2021-22. Not likely to reach fresh highs.

Current share price presenting a value oriented investment.
Strong business for long term investors.
Steel company that produces large variety of staple products.
Excellent balance sheet with good P/E ratio.

The chart is improving by taking out a previous high and showing higher lows on the past 2 years. It's probably a mild uptrend. Not a screaming buy but positive.

If economic activity is ramping up, this is a place you want to be, but that's not what the market is telling you. Wait till the dust settles; you'll give up some return, but you'll gain stability if there's a downturn. Generates strong earnings in a strong economic cycle.

He likes finding these names that are off the radar. Still pretty cheap around 4.4x 2024, PE around 7.4x. Steel prices are high, as is steel demand while inventories are below normal. Set up well for Q1, but not Q4. Special dividends will continue. Commodity, and it's had a big run. Sell calls if you own it.

We like STN, but we would put correlation to it and STLC as fairly low. Any prediction needs to be taken with a grain of salt. STLC has a surprisingly-good Q3 and a pretty good Q4. It is a very cheap stock with a strong balance sheet, and it has bought back a lot of its own shares. EPS is expected to fall next year, but cash flow remains strong. We would be quite comfortable owning it.  
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In the middle of a long-term range. Yesterday's news looked very positive. Good, solid support around $38. Potential to get to $50 before it stalls out, in a 3-6 month timeframe. Get out if drops below $40.