Tree Island Steel (TSL.TO) Buy, Sell or Hold

Tree Island Steel (TSL.TO)

2.28

+0.02 (0.88%)

as of Jun 15, 2026, 5:35:20 pm Market Open.

12 watching

BUY

Steel products such as nails, galvanized wire etc. Stock prices dropped because of housing fears but is only about 30% exposed to the housing construction market. Commercial construction is doing very well. The high inventories have been worked through and there should be some upside from here on in.

DON'T BUY

16% yield in their market is expecting a decrease. Can have a lot of competition in nail production and weakening housing sales can be a problem.

TOP PICK

Pays a 17% yield. A much riskier name then what she would normally suggest. Payout ratio of about 103% over the trailing 12 months. Thinks the market is expecting a distribution cut but she does not think so. A compelling buy at this price.

SELL

Highly tied to the construction industry. Has come off quite a bit in the last little while. Payout ratio is very high. High risk.

SELL

The last few quarters have been disappointing. There is a glut of inventory of their product. Sell now, and if you like it, buy it back after they cut distributions.

DON'T BUY

This is a higher risk investment. There is a good chance they could cut distributions. They are paying out more than 100% of their cash flow. Debt ratio is very low.

DON'T BUY

The yield is in the mid teens which indicates a lot of risk.

DON'T BUY

They have been hit by foreign competition ramping up in 2005 as well as by the strong Canadian dollar. Had a terrible year over year momentum in that they lost sales in 2005 over 2004. There's a very good chance that their payout ratio will get very close to 100% in 2006.

PAST TOP PICK

(A Top Pick Oct 7/05. Down 24%.) Q3 results were not that bad, but what got the market upset was the guidance. Getting competition from China on their wire and nails. Still committed and have been buying under $9.

HOLD

Doesn't focus on this trust very much. One of the largest manufacturers of wire and nails. Have had to reduce margins and pressure has come from foreign competition.

TOP PICK

A business trust based in Richmond B.C. Produces nails, wires, bolts, etc. Has low debt to cash flow. Should get some upside from construction products in Vancouver. Their wire rod costs are coming down.

BUY

Had unbelievably stellar results in Q1 and Q2 last year. They were tight on a payout ratio this past 2nd quarter. He is prepared to live with it longer term. Reasonable long term payout ratio. Good balance sheet.

BUY

Makes nails and steel wire products. A bit more complex in that it has facilities both in the US and Canada. Has done very well since their IPO. Have some currency exposure. Had an amazingly good strong year last year and the market may be a bit concerned about how far it's come down. Thinks the outlook is very good.

HOLD

Recently had a little bit of a set back due to the rising prices of steel which is now turning in the opposite direction.

DON'T BUY

Could fall under some potential risk if legislation is changed regarding taxability of US domiciled businesses. A very competitive business. Can be volatile.

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