Corner of Berkshire & Fairfax Message Board

General Category => Fairfax Financial => Topic started by: wondering on November 19, 2018, 06:33:58 AM

Title: Stelco investment
Post by: wondering on November 19, 2018, 06:33:58 AM
https://www.fairfax.ca/news/press-releases/press-release-details/2018/Fairfax-Announces-Acquisition-of-Shares-of-Stelco/default.aspx
Title: Re: Stelco investment
Post by: StubbleJumper on November 19, 2018, 06:38:57 AM
A company which has declared bankruptcy in the past, in an industry that is subject to new US tariffs on steel and is being bought at the top of the economic cycle.

Perfect.  What could possibly go wrong?


SJ
Title: Re: Stelco investment
Post by: StubbleJumper on November 19, 2018, 08:43:53 AM
FFH announces an investment of CDN$250m in Stelco and then the market cap this morning is down by ~CAD$150m. 

SJ
Title: Re: Stelco investment
Post by: mcliu on November 19, 2018, 12:50:28 PM
Cyclical industry, commodity products, lots of pension obligations. What's not to like? ;D
To be fair, they've done fairly well on some of these investments like Ridley and Resolute (maybe).