Current Watch List

Here is the current list of stocks I am watching;

There has been alot of action around Dofasco and Arcelor these days. It would seem that steel stocks are in play, for consolidation of the industry. Given the fact Mittal has made a hostile bid for Arcelor, size doesn't seem to matter. Given that, here are a couple of good buys based on what I have seen;

Corus Group - A marriage of British Steel and Hoogovens, the company has had its share of problems while the bugs were being worked out. Although they still have some fundamental problems, with the current wave of consolidation, Corus looks like it could be a target for someone like Mittal. The question is whether Nippon Steel, being 3rd ranked overall, will they stay there, or will they go on a buying binge? I think news that Corus is being stalked might come out in the 6 months. Worth looking into.

AK Steel - This is a quandry. With the recent results from Nucor, showing an 11% increase over last year, AK should be doing better. I figure AK will go down lower in the next 6 months, based on steel price outlook, and with the Big 3 auto companies cutting back, AK will be hardpressed to show good results. However, with Mittal's style of picking up bargains, I figure the stock will drop mid 2006, and look for someone to come in and steal AK. If the Mittal/Arcelor bid is unsuccessful, then Mittal will turn his sights to some other commodity steelmaker - AK is strip, but Mittal may not be able to pass up a bargain. Auto business should pick up late 2006, and AK might be able to scoop some profits.

I have been lax in writing this blog recently. I will be catching up on some specific financial news this week, and get caught up with the action in the market. I'll also have some comments on the stocks on my watchlist. Stay tuned.

Top Returns for Canadian Companies - 2005

If you were lucky enough to get into a few of these stocks in 2005, you would have at least doubled your money;

I pulled off the breakdown by large, mid, small cap returns;

Let's hope for the same returns and opportunities for 2006.

Stelco provides restructuring update

More news on Stelco...it should be interesting to see what the creditors do with respect to shares and cash.

HAMILTON, ON, Jan. 9 /CNW/ - Stelco Inc. (TSX:STE) today issued an updateon various measures being pursued under its Court-supervised restructuring process. The update is designed to, among other things, provide information that will assist affected creditors in electing whether to receive all or anypart of their distribution from the cash pool in new common shares of Stelco, rather than cash, as part of the recovery provided under the restructuring plan approved by affected creditors on December 9, 2005. The Company indicated that election forms were delivered to all in recent weeks. Under the restructuring plan, each affectedcreditor may elect, no later than 5:00 p.m. (Eastern time) on January 16,2006, to receive all or any part of its distribution from the cash pool in new common shares, subject to an overall limit on the number of new common shares that creditors collectively can elect to receive. Any affected creditor whodoes not so elect will receive its entire distribution from the cash pool in cash. Stelco also confirmed that the Court will consider the restructuring plan approved on December 9, 2005 at a sanction hearing on January 17, 2006. At that time the Court will also hear an application by certain existing shareholders seeking the sale of the entire Stelco enterprise as a going concern. Stelco does not believe that such a course would be in the best interests of the Company and its stakeholders. The Company also reported that the process of identifying a new board ofdirectors is continuing. The Company's agreement with the three significant equity holders provides that the new board will consist of: four directors to be named by Tricap Management Limited, one director to be named by each of Sunrise Partners Limited Partnership and Appaloosa Management LP, and the remaining three directors to be satisfactory to the three significant equity holders as a group. It is expected that the composition of the new board will be announced shortly before the date of the sanction hearing. Stelco also announced that the three significant equity holders, whotogether will hold a majority of shares in the Company upon completion of the restructuring, have indicated their desire that Courtney Pratt, the currentchief executive officer of the Company, be named chairman of the new board of directors, and that the Company seek a new chief executive officer. Any such changes are dependent upon plan implementation, scheduled for the end of February 2006.

Christmas Holidays are Over...Back to Posting

It's been a nice break for the Christmas holidays, so of course I took the time to refresh, and give some thought as to what will be happening for this blog for the next year. I have still accumulated some information, which I will be posting throughout the week. For now, the revised riskgrade account, showing our cash balance to date;

Stay tuned for more postings over the week.