would just like to update a few steel stocks for the year end.
have metioned ipsco (thread question kirk) 11-09 it was then $37.80 cdn. 31.74us
now sits at $54.82 cdn. and is up 45% (pays small div also). have put stops in place at $50 50% and $45 50%. the company is only trading at 8 pe, however there is a good chance of steel prices coming off the recent high prices, the reason for the the stops.
as for algoma and dofasco both have had good years. wish I had larger positions in the stocks but who knew
have stops in place in case there is a sell off but do not want to sell a stock making a new high ie. fording....
should have bought more steel stocks.
also was critical of a writer in a newsletter who thought stelco was a good buy.
the recommendation was good (it doubled) still believe it was luck.
1. Stelco is in creditor protection, who knows, one thing to try to guess steel markets but then study law.
2. management did not have to put the company in this position as it had a great quarter and is cash flow positive. did they try to raise equity, debt. no. they put it in creditor protection. management put it in creditor protection and seems to want to do a deal that would wipe out shareholders. and leave them running the company.....
3. the newsletter writer had a loss on the position over 20%, and was dollar cost averaging. breaks a rule.
4. Stelco (managment) has a history of destroying shareholder wealth, the opposite of Dofasco.
I hope the people who took his advice or hold stelco shares sell. there is a high risk that you may lose all of your investment, in other words the luck may run out. Bond holders do not like to share in these situations.
thanks
selkirk
have metioned ipsco (thread question kirk) 11-09 it was then $37.80 cdn. 31.74us
now sits at $54.82 cdn. and is up 45% (pays small div also). have put stops in place at $50 50% and $45 50%. the company is only trading at 8 pe, however there is a good chance of steel prices coming off the recent high prices, the reason for the the stops.
as for algoma and dofasco both have had good years. wish I had larger positions in the stocks but who knew
have stops in place in case there is a sell off but do not want to sell a stock making a new high ie. fording....
should have bought more steel stocks.
also was critical of a writer in a newsletter who thought stelco was a good buy.
the recommendation was good (it doubled) still believe it was luck.
1. Stelco is in creditor protection, who knows, one thing to try to guess steel markets but then study law.
2. management did not have to put the company in this position as it had a great quarter and is cash flow positive. did they try to raise equity, debt. no. they put it in creditor protection. management put it in creditor protection and seems to want to do a deal that would wipe out shareholders. and leave them running the company.....
3. the newsletter writer had a loss on the position over 20%, and was dollar cost averaging. breaks a rule.
4. Stelco (managment) has a history of destroying shareholder wealth, the opposite of Dofasco.
I hope the people who took his advice or hold stelco shares sell. there is a high risk that you may lose all of your investment, in other words the luck may run out. Bond holders do not like to share in these situations.
thanks
selkirk
