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 Originally Posted by RTM
""We have carefully invested in high demand inventory using our strong 30 June
2021 cash position which we expect to rebuild in the second half of the
financial year as deferred income during the lockdowns is fully recovered...."
They have signaled that they have used the cash
Aye - all that cash cps thats been referred to is now inventory per share! Thats fine - cant sell what you cant stock. But they will have bought less stock for the equivalent amount of cash given steel prices. That says to me the big arbitrage they got in prices might not be there in future results. And if steel prices fall, well, that can likewise take straight away from the bottom line. But at least volumes should be robust enough for a while yet.
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Originally Posted by Fiordland Moose
Aye - all that cash cps thats been referred to is now inventory per share! Thats fine - cant sell what you cant stock. But they will have bought less stock for the equivalent amount of cash given steel prices. That says to me the big arbitrage they got in prices might not be there in future results. And if steel prices fall, well, that can likewise take straight away from the bottom line. But at least volumes should be robust enough for a while yet.
And to think I thought with shipping issues,prices going up,having stock when others are out of stock, they would be making windfall profits,and another upgrade in January..lol.
Last edited by percy; 17-12-2021 at 01:53 PM.
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Originally Posted by percy
And to think I thought with shipping issues,prices going up,having stock when others are out of stock, they would be making windfall profits,and another upgrade in January..lol.
Looks to me STU are "well positioned," as I feel NZ faces much the same issues as our Australian cousins.
https://sendy.tarawera.co.nz/l/J6oLV...zz192bf9wy763w
Last edited by percy; 18-12-2021 at 10:51 AM.
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Originally Posted by percy
Yes, it's a world-wide problem. I would think, though, that Australia is somewhat better placed with a more mature/diversified steel industry than NZ.
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Originally Posted by percy
Sober reading and this is why I have been out of retailers, bar a very small number of HLG, for a while now. This has been on the horizon for a few months but I feel many people are under estimating what all these shortages and price increases may do to many companies.
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Originally Posted by percy
And to think I thought with shipping issues,prices going up,having stock when others are out of stock, they would be making windfall profits,and another upgrade in January..lol.
There’s no doubt they are making windfall profits and the near term is quite good. It will be good to get some guidance for the YE (I dont have a feel for it). Im thinking the easy gain and pain comes from movement in steel prices as straight to the bottom line, as opposed to uplifts or falls in volumes.
No expert in steel prices. These caught my eye:
https://capital.com/amp/steel-price-...-rally-is-over
https://www.afr.com/world/asia/china...0211214-p59hl5
Last edited by Muse; 17-12-2021 at 02:06 PM.
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Originally Posted by iceman
Sober reading and this is why I have been out of retailers, bar a very small number of HLG, for a while now. This has been on the horizon for a few months but I feel many people are under estimating what all these shortages and price increases may do to many companies.
Retail has actually been a nice home for money in 2021 (bar HLG) but yes I am increasingly thinking retail is no good for 2022
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Junior Member
What are people's thoughts on impact on STU due to the anticipated residential construction slowdown as a result of all the lending tightening?
Is STU exposed to residential construction, if so by how much?
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Originally Posted by bobestm
What are people's thoughts on impact on STU due to the anticipated residential construction slowdown as a result of all the lending tightening?
Is STU exposed to residential construction, if so by how much?
According to recent pressos:
* Residential construction: 21% sales in FY21 (june 21 financial year), up from 15% in FY20
* Non residential construction: 26% FY21 / 24% FY20
* Infrastructure: 14% FY21 / 13% FY20
* Non food manufacturing: 19% fy21, 24% FY20
* Food manufacturing: 12% FY21 / 14% FY20
* Retail/wholesale: 8% FY21 10% FY20
Or even more summarised:
* 47% residential & commercial construction
* 14% infrastructure
* 31% manufacturing
* 8% merchants / other.
Some FY22 market outlook commentary from the November 2021 investor presentation
* residential expected to flatten due to expected interest rate rises & supply/demand imbalanced slowing reducing w/ borders closed
* commercial seeing positive uplift in consents & significant increase in tenders coming to the market
* infrastructure continuing to build due to significant under investment
* expanding manufacturing sector
Last edited by Muse; 19-12-2021 at 08:42 AM.
Reason: additional data
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Love that winner69. Yes we are on the verge of something great. We will be rewarded and that graph is going to go up up up. Let’s revisit this post in a year. Closed $1.47
Last edited by Shareguy; 20-12-2021 at 08:54 PM.
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