Don't whisper too loud -- a now profitable FBU might be attracted in for another
swipe at a large pot of discounted STU, leaving without any spitting pips out ..
Not going to happen as there’s a 20% blocking stake.
Dis. Holder and confident we will see $1 on sp in 2021.
Talk to developers and they will tell you that resources are getting very stretched out there in the building, construction and infrastructure sectors - a huge change from 6 months ago when they were being inaudated by subies & tradesmen looking for work.
Result : Prices are going up for both manpower & materials.
If a company (STU) can average a return on its equity capital of 9.24% over the 13 years between 2007 and 2020, even though it made a lot of mistakes, and then the value of this equity capital is written down, and then you can buy that capital for give or take 50c on the dollar.
Then what would your returns as an owner of this capital be over the next few years providing they can continue stumbling blindly along in the hopeless fashion they have been?
Is STU's bottom line gonna accelerate away any time soon on back of such positive vibes .. or still too hard ?
Let's face it with all work & construction under way currently - if it didn't bounce it's way through to vastly
enhanced profitability then most may have to conclude that STU was incapable of doing things well ..
even in very favorable times
“And I am happy to say, Steel & Tube, hit the mark, and reinforced their position as a digital leader in the steel industry,” says Reg. “I feel confident that following a massive year of IT change - Steel & Tube are now positioned for the future and can take their clients and employees with them!”
Been well positioned for quite a while but yet to deliver?
Like Fletchers though, may surprise market on the upside next trading update.
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