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November 23, 2005

Stelco crooks can now be rounded up, Wed., Nov. 23, 2005, 10:57 AM

Today, finally, the Big Media in Canada, and the School of Business at Hamilton Ontario's McMaster University (where I earned my MBA) can do something big for society.

For today, the number two steel manufacturer in the city of Hamilton, and in Canada (Hamilton is otherwise known as Steel City Canada), Dofasco (TSX: DFS), is the recipient of a US$3.7 Billion (Cdn$4.3 billion) buy-out offer from Arcelor, the world's second largest steel company.

Now that we are seeing a cash offer for a going-concern (#2) Canadian steel-maker (Dofasco), it may be possible to assess the fair market value of Stelco (TSX: STE.A) as the going-concern that it is. Comparing steel production, debt levels, etc, and backing out pension liabilities of each " it is now possible to determine a fair value for Stelco.

I have always said if these insider crooks at Stelco had not used the Canadian legal system and friends in the federal and Ontario government (both Liberal Party), that Stelco would be worth at least $5.00 a share. And until they are publicly disgraced, I have refused to write about any other Canadian public company in this blog. That's how pissed I am.

Mark my words, I'm sticking with this story until the end. Those crooks behind Stelco had the shares down to 15 cents a week ago ($15 million in market cap -- $15 MILLION " not $15 BILLION for *****sake! I want to puke just thinking about it.

Well, thank you Arcelor. At least somebody in this crazy world has the common sense to speak up and call a spade a spade.

And this is what happened to the Dofasco shares today.

Btw, Dofasco doesn't have a union, and it gives its workers the same employment deal as Stelco, and competes with Stelco in international markets. One is well managed; the other run by clowns, both in management and the corporate boardroom, and in the boardroom of the United Steelworkers union. These people should be ashamed of themselves. The workers in the Stelco plants are every bit as hard-working, and successful, as those at Dofasco. They are among the best in the world -- but they are led by idiots, and now thieves. What a sad legacy for the great city of Hamilton. It doesn't have to be. I hope it's not.

And I hope that the former elected representative to the federal government for the people of Hamilton -- the former Deputy Prime Minister of Canada, the one who had her riding stolen by friends of Prime Minister Paul Martin, immediately before this so-called bankruptcy process started -- will speak out about this travesty. That lady, Sheila Copps is also the daughter of the longest running Mayor of the City of Hamilton. The hard-working people of this city know full well about the integrity of the Copps family. They don't deserve these carpetbaggers from Toronto, Montreal and Ottawa stealing their future (and, if they can, a part of their past).

Outsiders are not going to believe how nefarious are the culprits in this affair. And how muted are the Ontario Securities Commission and Big Media in Toronto. And, can you image that a former head of the OSC was on the Stelco board through most of this disgraceful time? And a current member of the OSC -- the former CEO of Schwab Canada -- is now Dean of the School of Business at McMaster U. Is he going to say anything? I know this man, and I know him to be a man of incredible integrity, and as outspoken as me, so why don't we hear from him on this issue? Is that what you call being put in your place by Mr. Big?

Believe me; I am just getting started.

Posted by Posted by Bill Cara on November 23, 2005 10:57:05 AM | Category: Canada