Stelco Holdings Inc. (STLC-T)

Billy Kawasaki’s Insights - Billy’s most-liked answers from 5i Research. The pullback gives an interesting opportunity. The markets are worried about the stimulus bill and China. It is very cheap and is in a new cash position. If there is no reversal in global growth, which is unlikely, the stock has a good chance of decent recovery. Unlock Premium - Try 5i Free

Close to $19 EPS this year. Paying down debt quickly. Pulled back to $43. With the demand for infrastructure plus capital spending, it's hard to see how steel companies won't do very, very well.

Thinks there is a play in steel, although this is no longer early. Would play the steel play through ZMT. Stelco is a good name here although it has already had a good run. 10% range correction is possible. Use the past corrections as a guideline for entry.

He bought it early last year, because they opened a new furnace in Hamilton. Fundamentally, they're basking in higher steel prices, but can they stay high? The new furnace expands their margins a lot. Sell at high-30s/low-40s, because this is a cyclical stock.