Topic: How To Invest

Spinoffs, Takeovers & Special Situations Hotline – Friday, November 10, 2017

Article Excerpt

STELCO HOLDINGS INC., $19.31, symbol STLC on Toronto, began trading after its IPO on Friday, November 3. The company is a steel producer based in Hamilton. The shares rose 13% on the first day of trading, and are now up 13.6%. Stelco raised $200 million in an initial public offering at $17 a share, the midpoint of its expected pricing range. The company produces hot-rolled and other steel products for three main industries: North American auto manufacturing; oil drilling and pipelines; and residential, commercial and industrial construction. It now plans to focus on high-strength steel for the automotive and construction industries. Steel is a highly competitive business, and global capacity remains far higher than current production and demand. That could limit steel price increases. As well, the U.S. Commerce Department continues to study the possibility of imposing import tariffs on steel entering the U.S. That uncertainty, as well as unknowns surrounding the renegotiation of NAFTA, creates considerable risk for Stelco. OUR RECOMMENDATION: We don’t recommend…

You are trying to access subscriber-only content.

To read this article, you may subscribe or sign in.
If you are already a subscriber, log in here.

If you wish to become a subscriber, click here. Or you may enjoy access to all our publications when you become a Member of Pat McKeough's Inner Circle Pro.