End of the Cyclical Bear is near???
From the company reports over the years, they say steel prices affects STU bottom line
The chart below is a long term snapshot of STU..What a long term chart shows is STU's downtrend has been over 12 years, a lot longer than one would have thought as the 18month uptrend (2013 -2015) was considered long...STU is in a cyclical industry so that 18 month uptrend can be seen on the chart as a failed cyclical rally (cut off at the knees). The cause amongst other things could be the failure of a decent steel price rally and unexpected period (2010 - 2012) of global economic weakness..
The primary driver of Cyclical behaviour is the state of its market's economy...the other (secondary) drivers are cost of it's products (also cyclical) and amount of competitors in that same market (profit margin effect)
As I keep on hearing the management blaming the steel prices in restricting STU performance I added the Steel price indicator to the chart so to give an "eye" visual to determine what sort of correlation Steel prices have on the STU shareprice..Recently the steel prices (although still low) have rocketed upwards by 300%..STU has some resilence built in now..quote "When coupled with a relatively robust domestic economy, we are optimistic that we’ll see a stronger performance from the business in our next trading year.”
This may explain a poor Steel/Shareprice correlation back in 2010-2011 when the Global + NZ economy suffered a weak period with STU having many competitors (margin pressures).
STU price of the time of this posting $2.61 up 8 (+3.2%)
DISC: Hoop has STU shares
http://i458.photobucket.com/albums/q...2031012017.png