Q: With the Canadian government planning to support national building projects, like the expansion of the Port of Montreal and the Port of Churchill Manitoba.
Well this benefit Algoma steel? Would you consider this stock a buy?
Well this benefit Algoma steel? Would you consider this stock a buy?
5i Research Answer:
Any project can potentially be positive for the company, especially in the current 'buy Canadian' environment. However, the company is quite small and thus risky, has cancelled its dividend, and remains very exposed to US tariffs and a possible recession. The government projects may help, but these are longer term contracts and may not move the stock much until tariffs are resolved. We would consider it too risky to endorse right now.