STU

[melsmith90210]

This stock has jumped in the last 2 days, after doing nothing for a while yet I can' find anything to suggest why?

Anybody know?

[fundir]

investors have been a bit scared of a slow down in the construction sector, fbu today has showed that things are going along gang-busters at the moment and with comercial taking over from residential it doesn't look like it will slow down any time soon.

Don't forget that once commericial slows down there will still be a large amount of public works construction, and that, if anything will use even more steel....

[Lawso]

Up 20c so far today to 520. STU doubtless coat-tailing FBU to some degree.

After a break of five years I bought back into STU in September @ 452. Now showing a 29.2% gain + 15c final div.

[The P.O.D.]

That's an 18% return including the div.

where do you get 29.2% from?

3-4 years ago when STU was sitting on $1.30 and had a tiny p/e, I looked at it for a long time and then decided against it. Probably been one of the most untalked about stocks in that time but has shown legs.

[Lawso]

Sorry.

[BRICKS]

BRICKS visited STU today and is most impressed with the outcome well maintained buildings
not like the old days they are taking a bit of a beating just at present but the two things going for them One Steel wants to BUY & they pay DIVIDENDS..

[macduffy]

Yes, I agree with that.

STU is one of my income stocks and a classic cyclical IMO.
Ideally, I should be lightening off at the peak of the cycle ( SP and economic activity) and loading up at times like these. I never do, of course, but it's still a good earner even when times are tight.
Might still buy a few more but there are so many other girls to kiss and I'm still only grudgingly parting with my cash.

;)

[STRAT]

so many other girls to kiss and I'm still only grudgingly parting with my cash.

;)Now thats a business idea Macduffy now that its legal to get paid for kisses? :D

[macduffy]

Now thats a business idea Macduffy now that its legal to get paid for kisses? :D

Hi STRAT.

No, not a business idea so I can't cut you in on it I'm afraid.

:D

Just a mixed up use of the old investment axiom ..... "You can't kiss all the girls."

;)

[Yankiwi]

STU from $2.50 to $3.00 in a week on lightish volume. Well above the MA100 now.


It still appears to me to be in a mid/long term downtrend with a possible short term break out. Any wiser (than my own) TA thoughts?

I was eyeballing them on Monday and Tuesday but just couldn't quite pull the trigger. There goes another instant shot at 20% :rolleyes:

[Phaedrus]

STU from $2.50 to $3.00 in a week on lightish volume. Well above the MA100 now. It still appears to me to be in a mid/long term downtrend with a possible short term break out. Any wiser (than my own) TA thoughts?There is not much that can be added to your comments, YK. You have covered the important facts such as the low volume - today's big rise to $3 was on just 1911 shares, for example.
I have not plotted my usual raft of supplementary indicators on this chart because STU is in a consolidation zone and in such circumstances trend indicators just give a series of contradictory signals. The 100 ma cross you mention has no significance - price action has risen above it 6 times so far during the course of this wide trading range.
For STU to break its longterm (4 year) downtrend, the shareprice would need to go above the Resistance at $3.80. That is well above current price action and would mean a fairly late entry. The break of the current confirmed short-term trendline would make for a more timely signal for those wanting to buy.
I would see a retreat to the support at $2.50 as a buying opportunity.

The break of the 5 year uptrend gave a timely trendline-break Sell signal, getting you out of STU before you gave a lot of profits back to the market. A nice example of why a staunch "buy and hold" approach is a bad idea!

http://h1.ripway.com/78963/STU51.gif

[Yankiwi]

The break of the current confirmed short-term trendline would make for a more timely signal for those wanting to buy.
I would see a retreat to the support at $2.50 as a buying opportunity.



Thanks for sharing Ph. and yes I agree. I should have followed my gut earlier this week. I'll think seriously if/when the s/p gets back in that range again.

If memory serves, the last time STU tested the $2.50 resistance level mid 2008, takeover voices were being heard thus pushing the s/p up to the $3.80 resistance level.

Hmmmmm

STU a target again? :rolleyes:

Food for thought ;)

[macduffy]

IMO it's just a matter of time before STU's major shareholder takes them out.
Now would be a good time to do that but doubtful whether Onesteel ( or is it Bluescope?) has the cash to do so.
Meanwhile, it's a nice little divvy payer with potential for a bit of capital gain eventually.

[Yankiwi]

It's wonderful to see that long term support has held firmly at $2.50

Could STU be labeled as a bit of a safe haven in time like these?

Mr P. Would it be asking to much for and updated chart and your thoughts?

I had purchaced a parcel on 25/2/10 at 2.58. I then followed to increasing my holding by 300% on 7/5/10 at 2.57.

[Grimy]

And me at $2.53. Haven't looked at it today. Too busy buying and selling other stuff!

[Phaedrus]

It's wonderful to see that long term support has held firmly at $2.50.Yes, it really is remarkable how that level has held strong over the years - especially through the current turmoil. I don't think there are any really safe havens, but if there were, STU would have to be on the list.
There is no great insight to be gained from the chart apart from viewing the support. It's good that the OBV seems to have stopped falling, but the recent trendline break "buy" signal was caused by the OBV crabbing sideways rather than by a definitive rise so it should be ignored.
If I were in your situation, I would be inclined to hold on to my $2.57 - $2.58 STU and delay buying more until the global situation settles a little. This is a very good time to be holding cash. Here's a thought for you - maybe when you do buy, you would do better investing in something that had been severely beaten down, rather than adding to your STU investment - a stock you already hold at a good price and one that has not been hammered.

http://i602.photobucket.com/albums/tt102/PhaedrusPB/STU521-1.gif

[Lizard]

Now $2.15. FY result out today and puts it on P/E of about 19. Not that they're in bad shape, just a great example of a cyclical. Heavily dependent on capex, especially in commercial building and rural (dairy sheds). Hard to see much pick up for a while. In another year or so, maybe everyone will have forgotten about how much money they make in a boom and it will be time to buy. After all, they are "well-positioned for the future", eh Percy? ;)

[percy]

Now $2.15. FY result out today and puts it on P/E of about 19. Not that they're in bad shape, just a great example of a cyclical. Heavily dependent on capex, especially in commercial building and rural (dairy sheds). Hard to see much pick up for a while. In another year or so, maybe everyone will have forgotten about how much money they make in a boom and it will be time to buy. After all, they are "well-positioned for the future", eh Percy? ;)

You are as allways, exactly right Lizard.Well run company,with strong balance sheet.A good company to have on watch list.

[Vtrader]

looks like a trendbreak on price today percy,
no volume support and other indicators yet to fire also.
V.

[percy]

looks like a trendbreak on price today percy,
no volume support and other indicators yet to fire also.
V.

Thanks for the thumbs up Vtrader.
Phaedrus.Any chance of a chart update?

[Hoop]

Trends are more spectacular than the TA indicators...unfortunately :(

On closer observation the spectacular nature of this chart is dulled by the price column.. the big rises aren't that big as it looks.

However... the chart shows some great gap events and yesterdays gapped bound ascending triangle breakout ..spooky huh?

http://i458.photobucket.com/albums/qq306/Hoop_1/STU04022011.png

[Phaedrus]

This chart shows any STU "Buy" signals, Bullish Divergences and positive indicators.
STU appears to be on the verge of a trendline break.
Note that this is an unconfirmed trendline.
Vtrader notes that there is no volume support and other indicators are yet to fire.
That's the good news.
The bad news is that STU is still in a 6 year downtrend.

http://i602.photobucket.com/albums/tt102/PhaedrusPB/STU28.gif

[percy]

Hoop, thank you.
Phaedrus,thank you.I saw the long term down trend,but thought it may have turned. I suppose I was looking to buy.Was not sure,.so very much appriciate your guidance.

[macduffy]

A solid result from STU with half year underlying profit of around $8m, giving full year NPAT of $17m, an increase of 168% on the previous year.

SP up 2c.

[percy]

A solid result from STU with half year underlying profit of around $8m, giving full year NPAT of $17m, an increase of 168% on the previous year.

SP up 2c.
I thought it was a good result,but the outlook commentary was very sober reading.

[Lizard]

I thought it was a good result,but the outlook commentary was very sober reading.

I agree, percy. The result was a touch above where I was expecting, but was a bit disappointed the outlook wasn't stronger. Then again, STU can be a bit like that and tend to be a bit more bumpy than others, so may surprise (either way!) at half year. Nice to see the big chunky div though - that won't go amiss.

[macduffy]

Yes, Lizard, STU management seldom seem to see the glass more than half full, even at the best of times. Can hardly blame them given the unpredictable nature of their sector and business conditions generally. I thought it was a pretty good result and a realistic assessment of prospects.

[winner69]

Jeez the CEOs speech at the AGM was a bit sombre - I've heard more cheerful stuff at funerals

So half year $6-$7m almost 50% down on last year .... no matter the shareprice is starting to dive - so the charts only looked better for a little while

STU doing their best ..... like all associated with the construction/building industry hard to do bloody well when business is down 20% .... but the boom times have gone for a decade or more and outfits like STU need to understand that today level of activity is the new norm ... well maybe a bit better but not that much. I sense they recognise this and that is good

Just as well they have a controlling shareholder eh

[percy]

[QUOTE=winner69;360731]Jeez the CEOs speech at the AGM was a bit sombre - I've heard more cheerful stuff at funerals

Guess there was no talk of increasing the director's fees.!!!!!!

[macduffy]

Jeez the CEOs speech at the AGM was a bit sombre - I've heard more cheerful stuff at funerals



The DomPost (James Weir) takes a different tone. Photo of CEO Dave Taylor is headed "Upbeat message".

Different takes on the same information makes the market!

[percy]

I try to attend as many meetings as I can,because I have found reports of meetings totally at odds with my view queit often.
I put this down to reporters not actually owning shares in companies they report on.They just do not have the owner's eye.
I value sharetraders reports on meetings they have attended for the same reason;"the owner's eye."

[winner69]

I was there at the AGM (representing a shareholder I was even though really an interested industry observer) and listened to the speeches and left before the sandwiches which probablyy would have been quite nice

Might have been upbeat about last year but was pretty sombre about the present and the next yearl Haven't seen the DomPost today for that photo of an upbeat Taylor but Weirs report doesn't read 'upbeat'

They'll be OK as long as shareholders (ie the market) doesn't expect miracles ... we all need to accept the new norm that (real) growth is a thing of the past