Stelco investment

[wondering]

https://www.fairfax.ca/news/press-releases/press-release-details/2018/Fairfax-Announces-Acquisition-of-Shares-of-Stelco/default.aspx

[StubbleJumper]

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

[StubbleJumper]

FFH announces an investment of CDN$250m in Stelco and then the market cap this morning is down by ~CAD$150m. 

 

SJ

[mcliu]

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).