# Stella-Jones (SJ)



## RParks

Bought this a few weeks ago at around $57. It has shot up to $72 as of today so good for a 25+% gain. Just wondering if anybody else holds it and what some of you who follow it think the outlook is on it. Will it continue to surge?


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## ddkay

Congratulations on your gains. It's a small cap no one has ever heard of, I would take the winnings and put it in a blue chip. Forestry and wood product stocks have been on a tear this year, you may be safe holding longer, but I would still begin winding down the position.


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## P_I

Some one has heard of it :biggrin: -- Favorite underated hardly followed stock. I've owned it since the Feb. 2008. A very solid company in an interesting segment of the market. Valuations remains rich IMHO. 

The recent price rise is likely due to their recently announced acquisition that clearly is being viewed favourably. The report earnings on Nov 9th, which should give a better picture of expectations of the acquisition. Stella Jones is an infrastructure play that will benefit as long as railways are expanding and replacing track. I'd be cautious if there is any slowdown in capital expenditures in the railway space.


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## BullAllTheWay

RParks said:


> Bought this a few weeks ago at around $57. It has shot up to $72 as of today so good for a 25+% gain. Just wondering if anybody else holds it and what some of you who follow it think the outlook is on it. Will it continue to surge?


Don't make the mistake to sell it. In fact, you would be better off to take the certificate, put II in a drawer and forget it for 10 years. Seriously, do your DD. SJ is a Jewell. Superbly managed, growing constantly under the radar, paying dividends... Expect volatility but hold to them.
BTW, the acquisition has helped the stock but there is no telling how much money SJ will make because of Sandy. A lot, a big lot IMO.


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## namelessone

It's one of my favorite stock. 
I sold it by mistake in 2008. I kicked myself for that mistake and repurchased at a higher price in 2011.


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## Asterix

Up almost 4% today after the 4-1 split. Any reason for this, or just a sense of optimism after the split? Are people still holding this?


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## maxandrelax

I have been driving around Toronto and noticed that the steel utility poles and concrete poles are being replaced with wooden ones. Does anyone have any insight as to why? From my casual observation, steel ones rust and look crappy and the concrete ones always seem to be breaking down at the base. Linemen, are these styles of poles being abandoned? Is the return to wood poles an infrastructure trend? I can only assume this is good for SJ.


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## maxandrelax

My buddy who is a lineman in utah (for what it's worth), he doesn't usually work in urban areas: "Not a trend here. We use mainly wood poles but in some cases use steel...for angle pole and deadens, we do not have to use down guys/wires on steel. We also use steel on a lot of transmission but not all...national grid will and are going to upgrade to 500kV transmission circuits which means more steel. You might have a fast corrosion issue up there. I do not know that company but my boss (Warren Buffet) is buying up utility company's that generate and transmission circuits and those companies will do good"


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