Stelco Holdings Inc (TSX: STLC) produces flat-rolled steel products for the construction, automotive, and energy industries. The company has fallen out favor and the stock is now trading at new lows, far from its IPO price of $17. There are many political and economic reasons why the stock is trading at these levels. The market seems to be pricing in a recession, there is a fear that the USMCA may be delayed because of an impeachment, and, of course, trade wars. Furthermore, the price of the underlying commodity is transacting below its long-term average of $630/nt.
Disclaimer: Palos Funds are shareholders of STLC.
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