Tree Island Steel (TSL-T)

Battered by steel tariffs. Hold it if you still have it, because tariffs will get resolved.

He might be a bit early with this. This is a former income trust. Commodity prices (steel) were hurting their margins: they couldn’t raise prices fast enough. They had a very good recent quarter. Talk now is optimistic. He likes turnarounds like this. It’s not very liquid. Don’t chase it. Put in a bid and let sellers come to it. This is a cyclical business, it was a $6 not long ago. (Analysts’ price target is 3.75$)

The largest product is nails so it is a play on the recovery in the US and in their housing market. He thinks we are early in that recovery. He likes the housing recovery story.

They will be a beneficiary of what is going to happen in the US. He thinks people used this stock as a source of cash. He sees improved housing starts in the US.

(Market Call Minute.) Doesn’t like it.

Technically this looks good. Has a nice support and is beginning to break out of something that it has had difficulty in breaking out through. Looks like it could get up through $4.

Has watched this company for several years and kicks himself for not buying it. Debating whether to put it into his small business fund, but worries if it has run up too far. Enormously well-run. 2.25% dividend.