Tree Island Steel (TSE:TSL) Stock Crosses Below Two Hundred Day Moving Average - Time to Sell?

Key Points

• Stock crossed below its 200-day moving average: TSE:TSL fell beneath the C$2.71 200-day MA, trading as low as C$2.52 and last at C$2.54 on light volume (1,400 shares), a widely watched bearish technical signal.
• Recent earnings show a loss: The company reported C($0.13) EPS for the quarter with a negative ROE (-4.7%) and net margin (-3.18%) on C$34.31M revenue, though sell-side analysts forecast about C$0.405 EPS for the full year.
• Balance sheet and valuation mixed: Tree Island Steel has strong liquidity (current ratio 4.37, quick ratio 1.75) and low leverage (debt/equity 23.60) but a small market cap (C$65.8M) and a negative P/E (-12.1) reflecting recent losses.

Tree Island Steel Ltd. (TSE:TSL - Get Free Report)'s stock price passed below its 200-day moving average during trading on Thursday . The stock has a 200-day moving average of C$2.71 and traded as low as C$2.52. Tree Island Steel shares last traded at C$2.54, with a volume of 1,400 shares.

Tree Island Steel Trading Up 1.2%

The company has a fifty day simple moving average of C$2.62 and a two-hundred day simple moving average of C$2.71. The company has a quick ratio of 1.75, a current ratio of 4.37 and a debt-to-equity ratio of 23.60. The stock has a market capitalization of C$65.80 million, a P/E ratio of -12.10 and a beta of 0.15.

Tree Island Steel (TSE:TSL - Get Free Report) last posted its earnings results on Friday, March 13th. The company reported C($0.13) earnings per share for the quarter. Tree Island Steel had a negative return on equity of 4.70% and a negative net margin of 3.18%.The business had revenue of C$34.31 million for the quarter. On average, sell-side analysts expect that Tree Island Steel Ltd. will post 0.4054054 earnings per share for the current year.

About Tree Island Steel

Tree Island Steel Ltd operates in the steel business. It is engaged in the manufacturing and sale of steel wire and related products for a range of applications. It offers products such as bulk nails, stucco reinforcing products, concrete reinforcing mesh, fencing, and other fabricated wire products. The firm groups its products into the following: Industrial, Commercial, Agricultural, Construction, and Residential Construction. Key revenue is derived from the Industrial segment. The products are offered under Tree Island, Halsteel, K-Lath, True spec, Toughstrand, and Stucco-rite brands.

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