Issue 21 – The Handcuffs are Off
On May 17, 2019, the Canadian and US governments announced their decision to eliminate steel and aluminum tariffs. A company that I believe will significantly benefit from this phenomenon is Stelco (TSX: STLC). The elimination of tariffs should increase the company’s annual EBITDA by approximately $60 million. When the tariffs were initially introduced on May 31, 2018, STLC’s EBITDA was impacted by approximately $90 million
Disclaimer: Palos Funds are shareholders of STLC.
By Charles Marleau, CIM & Joany Pagé, CFA
By Hubert Marleau
By Robert Mendel
By William Mitchell