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This summary was created by AI, based on 3 opinions in the last 12 months.

Algoma Central Corp. (ALC-T) is a marine bulk transport business that has recently reported strong revenue growth. It is trading at a low price-to-earnings ratio and under book value, while also offering a good dividend yield with a low payout ratio. The company is focused on reducing debt, buying back shares, and has announced additional tanker orders. The experts recommend placing a stop-loss at $13.50 and see an upside potential of over 40% with a consensus on the stock's potential. However, the stock has triggered its stop-loss recommendation at $14.50 resulting in a net investment loss.

Consensus
Positive
Valuation
Undervalued
Similar
Scorpio Bulkers Inc., SALT
DON'T BUY

Owns lots of ships on the Great Lakes and trans-ocean. Very capital intensive, renewing its fleet, spending 100s of millions of dollars. Economically cyclical. In Q1, usually loses money; this year, lost less. Cautious 2024 outlook. Illiquid, trades almost by appointment.

Note that there are some convertible shares coming on the market at the end of this month, and as a result this might depress the stock price.

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This is a Panic-proof Portfolio opinion which is available only for Premium members

Curated by Michael O'Reilly since 2020.
1550+ opinions with 4.81 rating (one of the best performing expert).

PAST TOP PICK
(A Top Pick Sep 05/23, Down 5.2%)Stockchase Research Editor: Michael O’Reilly

Our PAST TOP PICK with ALC has triggered its stop at $14.50. To remain disciplined, we recommend covering the position at this time. This will result in a net investment loss of 5%, when combined with the previous recommendations. 

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This is a Panic-proof Portfolio opinion which is available only for Premium members

Curated by Michael O'Reilly since 2020.
1550+ opinions with 4.81 rating (one of the best performing expert).

TOP PICK
Stockchase Research Editor: Michael O'Reilly

We reiterate this marine bulk transport business as a TOP PICK.  Recently reported revenues were up 10% over the year.  Management expects a return to full fleet utilization for the balance of the year.  It trades at 7x earnings and under book value, while supporting a 15% ROE.  It pays a good dividend, backed by a payout ratio under 30% of cash flow.  We recommend trailing up the stop (from $13.50) to $14.50, looking to achieve $22.00 -- upside potential over 40%.  Yield 4.5%  

(Analysts’ price target is $22.50)
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This is a Panic-proof Portfolio opinion which is available only for Premium members

Curated by Michael O'Reilly since 2020.
1550+ opinions with 4.81 rating (one of the best performing expert).

TOP PICK
Stockchase Research Editor: Michael O'Reilly

Formerly known as Algoma Central Railway, this Ontario based bulk shipping company is a TOP PICK.  The company recently announced the order of two additional refined product tankers to be contracted to Irving Oil.  Cash reserves are growing, while the company reduces debt and buys back shares.  It trades under book value and 8x earnings, while supporting an 18% ROE.  It pays a nice dividend, backed by a payout ratio under 25% of cash flow.  We recommend placing a stop-loss at $13.50, looking to achieve $22.50 -- upside potential of 45%.  Yield 4.5%   

(Analysts’ price target is $22.75)
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BUY
Does not own shares in company. Current share price very fair. Good long term investment. Debt levels at good level. Trading at 7x cash flow.
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WEAK BUY
It has limited liquidity: caveat. It is a bulk-shipping company around the Great Lakes, so sensitive to volumes. As commodities do well, so will ALC. Their ships have upgraded to be cleaner and greener. Very good cash flow.
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WATCH

It is a shipper. It is a tough business. You often end up with empty ships doing a ‘dry’ run. This one has been rather consistent, but their return on capital is usually 5%, and is down to 2% right now. A year ago it was down to 1%. He likes improving return on capital. If it gets back to 5%, the stock would be worth about $20. We need to see that improvement. There is a small amount of evidence that the return on capital is improving.

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COMMENT

A very well-run company. It ships goods across the Great Lakes and owns assets in ocean shipping. This is now trading below BV. A cyclical business. It could easily recover if the Canadian economy starts to improve. If you are looking for value, he wouldn’t hesitate to Buy. The company is doing all the right things. They are keeping their costs under control and using their balance sheet to improve their ships.

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PAST TOP PICK

(A Top Pick Dec 1/14. Down 5.23%.) A small company that runs shipping vessels in the Great Lakes and also owns a share in an ocean shipping Company. The big news on this is that they have announced they are looking to sell their real estate, and he thinks there is an embedded value of $5 a share, and doesn’t think this is reflected in the stock price. He can see upside well into the $20-$25 range.

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COMMENT

Probably economy sensitive and is in the transportation sector, so it should be okay. Chart shows a long-term trend line and it is still in an uptrend.

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PAST TOP PICK

(A Top Pick Aug 21/14. Down 2.57%.) The great shipping line on the Great Lakes. A very sensible long-term Hold. Pays a small dividend. If you own, continue to Hold.

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PAST TOP PICK

(A Top Pick Aug 21/14. Up 11.09%.) This is a great fleet of commercial ships on the Great Lakes. Clearly one of those good stocks in safe waters in the current market. Pays a dividend. A good safe haven.

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BUY

Infrastructure is very important and these are long life assets. Shipping is never going to go away and they have ordered a bunch of new ships. Just reported their 4th quarter. Thinks normalized earnings for 2014 were about $1.20 a share and he is looking for $1.30-$1.40 a share in 2015. This is dirt cheap.

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TOP PICK

They will have spent $500 million by 2016 replacing their ship vessels and are going to have one of the youngest fleets in the world. This company is going to have better ships, more fuel efficient and will be able to load faster. He sees earnings, probably by the end of next year, getting up to a normalized $1.50 a share. You are only paying 10-11 times earnings. Also, have other assets that they can unlock, including about $100 million of real estate. Yield of 1.74%.

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TOP PICK

Greatest tanker fleet and in shipping of all the commodities. A good dividend. It has downtime in the winter. They might get to a higher level shortly due to a partial fleet modernization.

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Algoma Central Corp.(ALC-T) Rating

Ranking : 3 out of 5

Bullish - Buy Signals / Votes : 1

Neutral - Hold Signals / Votes : 0

Bearish - Sell Signals / Votes : 1

Total Signals / Votes : 2

Stockchase rating for Algoma Central Corp. is calculated according to the stock experts' signals. A high score means experts mostly recommend to buy the stock while a low score means experts mostly recommend to sell the stock.

Algoma Central Corp.(ALC-T) Frequently Asked Questions

What is Algoma Central Corp. stock symbol?

Algoma Central Corp. is a Canadian stock, trading under the symbol ALC-T on the Toronto Stock Exchange (ALC-CT). It is usually referred to as TSX:ALC or ALC-T

Is Algoma Central Corp. a buy or a sell?

In the last year, 2 stock analysts published opinions about ALC-T. 1 analyst recommended to BUY the stock. 1 analyst recommended to SELL the stock. The latest stock analyst recommendation is . Read the latest stock experts' ratings for Algoma Central Corp..

Is Algoma Central Corp. a good investment or a top pick?

Algoma Central Corp. was recommended as a Top Pick by on . Read the latest stock experts ratings for Algoma Central Corp..

Why is Algoma Central Corp. stock dropping?

Earnings reports or recent company news can cause the stock price to drop. Read stock experts’ recommendations for help on deciding if you should buy, sell or hold the stock.

Is Algoma Central Corp. worth watching?

2 stock analysts on Stockchase covered Algoma Central Corp. In the last year. It is a trending stock that is worth watching.

What is Algoma Central Corp. stock price?

On 2024-06-24, Algoma Central Corp. (ALC-T) stock closed at a price of $14.155.