Topic: How To Invest

Q: Pat, I would like your opinion on Algoma Central Corp. (ALC). It has been a few years since you have commented on it. They have recently purchased new tankers and announced that they are fully booked for the season.

Article Excerpt

A: Algoma Central Corp., $13.04, symbol ALC on Toronto (Shares outstanding: 38.4 million; Market cap: $500.8 million; www.algonet.com), owns and operates Canada’s largest domestic fleet of vessels operating on the Great Lakes/St. Lawrence Waterway. This includes self-unloading, dry-bulk carriers; dry-bulk carriers; and tankers for liquid petroleum product. Algoma also owns ocean self-unloading dry-bulk vessels operating in international markets and a 50% interest in NovaAlgoma. That operation includes a diversified portfolio of dry-bulk fleets operating internationally. In addition, the company owns a shopping centre and an apartment building located in Sault Ste. Marie, Ontario. In the three months ended March 31, 2019, Algoma’s revenue rose 18.8%, to $71.9 million from $60.5 million a year earlier. The increase was mainly the result of high customer demand and the addition of one vessel to the product tanker segment. The ocean self-unloader segment also operated at capacity. The company lost $22.8 million, or $0.59 a share, compared to $9.1 million, or $0.23. The higher loss was mainly due…

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