This is an update on Algoma Central Corporation.

Algoma Central Corporation Target (Revised recently) Achieved

As a result of its revised target price, Algoma Central has achieved its target price today. We recommend booking profits now. From TVISIL Stock Tracker, this position is now listed as closed.

The Value Investing Sage team recommended Algoma Central Corporation around CAD$16.90 in Dec 2021. It rose to CAD$18.02 on January 19th, 2022, and fell to CAD$14.85 by July 2022. CAD$18.93 was the highest price ever recorded in September 2021.

Our price target was recently revised to CAD$17 based on historical financial data, which does not appear to be very promising. Although the stock still meets all of the core criteria of Simple Way 2.0, its historical performance suggests no strong potential, at least in the short term. A low PE of 7.4x is due to the all-time high EPS of CAD$2.33 per share.

A dividend of CAD$0.34 has been paid and the stock currently trades at CAD$17.25, almost giving a net return of 4.1%. Our position in the stock did not produce a very high return, but we are still profiting from it. The NASDAQ, on the other hand, has fallen by -17.1% over the same period. The stocks we recommend do not all end up as multibaggers such as SPRT, IMO and HUR.L. Some end up delisted (100% loss). We are still making money from this stock, and will reevaluate it if undervaluation arises in the future. As a result, Algoma Central Corporation is no longer a buy, and we suggest booking profits in it at the current market price of CAD$17.25.

Best Regards

The Value Investing Sage Team