It's better than nothing but jeez, is that amount really a vote of confidence?
A vote of confidence would be a significant portion of his entire net worth, or better still a multiple of his net worth.
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Looks like high flying construction related stocks aren't immune from market crashes
Maybe STU share price is signalling the building boom is over .... expensive materials (if you can get them), no labour and if they have labour it costs them heaps, proposed activity not going ahead (finances etc) etc etc etc
Maybe construction not the place to be after all
Yes I should have. Currently down 26% in NZD on the Russian bank, though I can't sell and the quoted price may not be real if the exchange was open to the world. The Rouble is by far the strongest currency in the world YTD however.
Regarding STU, this years earnings are of little interest to anyone particularly the market. As we're buying the future net cash flows and discounting them back to present there is more to think about and a great place to look is the past with a business like this. Look at revenue growth over 15 years, look at capital allocation, margins...
Yes things might be looking up taking a snapshot right now but old habits die hard and if we assume nothing much will change then it's actually trading more like 13-14 x sustainable long term earnings. If, as some people are assuming STU is a totally new company and can paint a much different picture going forward than they ever have in past then who knows. I'd rather stick with Sberbank, one of the worlds best banks which has one of the best track records in existence.
Most of what we're seeing here is nothing to do with STU anyway, just the industry giving them a cyclical boost. And apart from the divvy, god only knows what stupid thing they decide to do with the retained earnings. Not buying in stock under 80c was criminal.
WOW!
Assuming the remaining 2 months of the FY go as well as the first 10 did, they might end up with $600m revenue and 17.4 cents EPS, which would be roughly 7.5% above the previous analyst consensus (for revenue) and even 10% higher for earnings. Speaks as well for a further improvement of their margins and might justify a wee price nudge upwards.
They are clearly riding the wave ...
Yeah, ride the wave while its high but this is unquestionably a classic cyclical stock and importantly does not have the history of many years of strong and reliable dividend payments for me to classify it as a reliable source of retirement income, which is my main focus now.