Algoma Steel Group Inc (ASTL.TO) Buy, Sell or…

Algoma Steel Group Inc (ASTL.TO)

6.29

-0.09 (1.41%)

as of Jun 19, 2026, 8:00:01 pm Market Open.

4 watching

HOLD

Moved up a little bit in the shadow of Dofasco (DFS-T). A US hedge fund has asked for a special meeting to get them to pay out their big wad of cash as a special dividend. Algoma is resisting but will probably pay out something.

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PAST TOP PICK

(A Top Pick Sept 12/05. Up 1%.) It now has a US hedge fund shareholder that's calling a vote here to pay a special dividend. Very cheap, but feels the upside is only to $27/28.

DON'T BUY

Steel is not doing as well as it was. US Hedge fund wants them to pay out the excess money they made in the form of a special dividend. Doubtful if this will happen.

BUY

Steel prices look like they're moving up a little bit in the 4th quarter and probably by the end of the year they'll be almost $10 in cash again. Thinks there's one last run in it just on valuation up to the mid to high $20's.

DON'T BUY

Buying back shares and paying special dividends which is stupid as they will need that extra cash in the next down cycle of steel. A very cyclical business. Steel prices have weakened and if we have a recession in the US there will be a dampening of steel demand.

TOP PICK

Paid a $6 special dividend last month which is why it is down. In the $22/23 range, you have about $11 a share in cash and it looks like steel prices are turning around a little bit. They could probably earn in the $3.50 range next year with current steel prices.Only trades at 3/4 X earnings if you ex the cash. Extremely cheap.

SELL

Not a fan of steel in general. The steel industry is going much more into a competitive phase. China is now a net exporter. Doesn't see the steel industry being good for the next several years.

HOLD

Paying out a special dividend of $6. With high steel prices, has really cleaned up its balance sheet and has more than $6 a share in cash. Possible share buy-back next year. A cyclical company that rises and falls with steel prices. If you like, continue to hold or sell it and realize a capital gain.

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TOP PICK

A strange situation. Were for sale but have now taken themselves off the market and announced a $6 dividend. Hedge funds had been holding for a takeout and so sold off their holdings which dropped the price.

BUY

Have a lot of cash on hand and is expected to pay a big dividend. Historically, stocks trade lower after special dividends. Likes the phenominal profit growth that he sees. Good speculative investment.

DON'T BUY

Was a bust in 2001 and restructured and came out when steel prices took off and they played it very well. Has come down since March because the steel cycle is coming off at the margin. Still making lots of money. If you feel it might get taken out you could speculate on it. It is amongst the weaker players. Prefers Dofasco (DFS-T).

TRADE

The group including Gerdau Ameristeel (GNA-T), Algoma (AGA-T), Ipsco (IPS-T) and Dofasco (DFS-T) to a lesser extent has come off of its peak. Looks like steel prices have peaked for the cycle yet these stocks are extremely statistically cheap. Could be some activity like takeovers, as cash builds up. Find one that is cheap and could be taken over.

BUY

Prefers this for the leveraged side of steel as opposed to Gerdau Ameristeel (GNA-T) in the hot rolled steel. To be safe, you could go to the fabricators, Harris (HSG-T) or Russel (RUS-T).

WAIT

Steel stocks can be very volatile. His sector model on the steels has recently rolled over indicating some short term risks. Feels that the cycle and the pricing power of the steel producers remains intact. Wouldn't buy at this time.

DON'T BUY

Doesn't like the steel industry. Companies have been helped by the price of steel going up so high. Have to be careful and buy a good company that is run well and that is key in the steel industry. Feels that China has been building plants and that they will be an exporter of steel.

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Algoma Steel Group Inc (ASTL.TO)