Greg Newman Stelco Holdings Inc. STLC-T PARTIAL SELL Jan 04, 2024

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.

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.