STU - Steel & Tube Holdings

[Balance]

http://nzx-prod-s7fsd7f98s.s3-websit...909/284120.pdf

Per the offer document, this must be the most misleading statement possible to existing shareholders :

"The Offer follows the successful placement of $20.8 million of New Shares to institutional investors at $1.15 per share, being a higher price than under this Offer."

They are totally different type of shares under the offer!

Conveniently leaving out the fact that these are shares cum-rights so effective entry price (when they take up their rights at $1.05) is $1.08 vs $1.28 for those who hold shares at time of announcement!

So now we see those who obtained shares at $1.15 (18m shares) or $1.08 ex-rights dish them out to the happy punters out there for a quick profit.

Good on them!

Great if you are favoured to receive a few millions of them for a quick flick!

[steveb]

You might have a problem finding some mug to buy a couple of million shares in this dog though

[rugila]

Funny thing. Bought my first STU shares in Dec 1998 @ $1.55
Sold some on 4/3/2005 @ $5.55 which I think is the highest STU shares have ever sold for.
Dividends over the years have been OK but my net return (capital + dividends) on STU to date is only 1.7% per annum which is appallingly pathetic compared with 13.1% from RBD, 10-15% from property, & etc.
Haven't kept up with the company well enough in recent years to really know what went wrong. Don't know what to do about the rights issue. Will probably just toss a coin.

[Snow Leopard]

Think there will nearly 166M shares after all this is done.

FY19 Estimate $25M EBIT would then be about $0.104 NPAT.

'Normalised' $35M EBIT down the road would then be about 'normalised' $0.148 NPAT.


Might be worth a small punt at $1.28 cum rights or $1.20 ex rights for me, but just as happy to stay off the register.

Now trading at $1.20 or less mark.

So do I put my money where my post is or not?

Decisions, decisions

[Balance]

Now trading at $1.20 or less mark.

So do I put my money where my post is or not?

Decisions, decisions

Guess those got their shares in the placement at $1.08 equivalent will be happy to continue to lighten up - especially with the impending announcement any day now on the penalties to be imposed on STU re the substandard mesh steel?

$1.20 is still a nice healthy 11% profit for a week - that's 572% in a year if you can get sweet deals alike this every week!

[winner69]

Guess those got their shares in the placement at $1.08 equivalent will be happy to continue to lighten up - especially with the impending announcement any day now on the penalties to be imposed on STU re the substandard mesh steel?

$1.20 is still a nice healthy 11% profit for a week - that's 572% in a year if you can get sweet deals alike this every week!

Wonder what those who bought at $1.34 ex rights day are thinking?

[Balance]

Wonder what those who bought at $1.34 ex rights day are thinking?

Being ever so cynical, wouldn't be surprised one bit if the $1.34 and $1.30 (not big volume anyway) trades were made by those who took part in the placement at $1.25 to suck in the 'insightful' ones?

[100101]

I'm in the same boat. But today with the price sinking ever closer to the issue price, I am thinking that I will park what I have in the bottom draw for a few years.
With no divis this year and a bit unknown next, along with the Instos who will be selling for a bit of profit for a long time to come, why throw good money after bad?

[sideline]

Hi, just saw the announcement from Milford on 10-Aug 2018 where they declared:

...........
Details of transactions and events giving rise to substantial holding
Details of the transactions or other events requiring disclosure:
On-market purchases of 6,081,917 ordinary shares, for total consideration of $7,016,509.35 was made during the period 10 April 2018 – 10 August 2018.
..........

Average price works out just above 1.15, but the market never traded below 1.22 in
that period. So they obviously got themselves around 6m shares in the discounted
placement for 1.15 and declared them misleadingly as "on-market purchases".
Is this legal?

[Balance]

Hi, just saw the announcement from Milford on 10-Aug 2018 where they declared:

...........
Details of transactions and events giving rise to substantial holding
Details of the transactions or other events requiring disclosure:
On-market purchases of 6,081,917 ordinary shares, for total consideration of $7,016,509.35 was made during the period 10 April 2018 – 10 August 2018.
..........

Average price works out just above 1.15, but the market never traded below 1.22 in
that period. So they obviously got themselves around 6m shares in the discounted
placement for 1.15 and declared them misleadingly as "on-market purchases".
Is this legal?

Good catch, sideline.

Effectively with the rights issue, Milford gets 9.157m shares at $1.08 - good deal if you can get it.