Top 5 Stock Picks of Randall Smith’s Alden Global

2. Algoma Steel Group Inc. (NASDAQ:ASTL)

Alden Global’s Stake Value: $7.346 million

Number of Hedge Fund Holders: 48

The second of two steel companies in the list of top 10 stock picks of Randall Smith’s Alden Global is Algoma Steel Group Inc. (NASDAQ:ASTL), whose products are sold in the United States, Canada and overseas.

Ravensource, in its Q4 2021 investor letter, mentioned Algoma Steel Group Inc. (NASDAQ:ASTL). Here is what is said:

“Algoma is a Canadian steel producer based in Sault Ste. Marie, Ontario. It emerged from insolvency in November 2018 with a clean balance sheet and began its operating turnaround. It remained a private company until October 2021, when it merged with a public SPAC.

Algoma is the classic “orphan security” we’ve successfully profited off in the past: a post- restructuring stock which has yet to find a stable, long-term oriented investor base. Algoma is unquestionably cheap. It generates tremendous cash flow at current steel prices, and likely will earn its entire market cap in less than 18 months — both quickly de-risking us and providing substantial upside. The issue is that despite the public listing Algoma: 1) remains largely owned by its pre-CCAA creditors, who want out; and 2) new equity investors are staying away for now due to its CCAA overhang; out-of-favour industry; and lack of historical public financials.”