STU - Steel & Tube Holdings

[winner69]

It was always a load of pipedream bull**** and called as such by me and others at the time.

No ..a steel tube dream down the gurgler

Not just Board but seems finance dept not that clever either

Suppose Management pretty bad as well.

[winner69]

Seems weird that this magical $4m that should have been included in Cost of Sales in F18 didn’t seem to be an issue when they produced Half Year Accounts in February

Weird ....or fishy ...or just inept.

[Beagle]

I think the STU board are delusional. Their results in recent years have been very poor and their most recent result is truly appalling considering we're at the peak of the building cycle. Further, anyone that thinks their recent write-downs represent the full extent of all the skeletons in the closet is clearly extremely optimistic or simply naïve.
They were so desperate to raise new equity they had to issue it at a truly massive discount to vwap but 5 minutes later so too speak they're trying to say the shares are worth double that. Who are they trying to kid ? This dog keeping his snout pretty close to the ground is hearings murmurings from private construction companies that things are coming off the boil.

As for FBU, talk about the blind trying to lead the blind..their truly appalling track record of trying to achieve synergies and their own appalling track record of massive write-downs and false claims of all dirty laundry now being clean are far too keen to write a big cheque before they've even got one for the divisions they're trying to sell to fix up past gross mistakes. I think the FBU board need to be far more conservative before they start playing Russian Roulette with hundreds of millions more of shareholders funds that represents money that's not even in the bank yet.

Which is the uglier cousin lol.

Posted 17/10/2018. As usual I made my feelings quite clear. This and FBU are poorly governed, poorly managed and chock a block full of incompetent and heavily overpaid middle management as well. Balance was touting this as a takeover target back then and talking up future EBIT as being quite achievable.
Wonder what he would say now if he wasn't still banned.

[winner69]

Wonder if share price will go sub $1

Even at $1.13 it’s on a PE of 17 to 18 (based on EPS of 6.5 cents)

Trade at Metro Glass multiples it would be about 60 / 70 cents

But STU a much more robust company with a new computer system.

[winner69]

no news is good news👍

A month later and you get bad news mate.

[winner69]

No news is good news that is for sure... unfortunately there is still a good few months some news (good or bad or neutral) could be released) so 25m EBIT FY19 is far from a done deal in my view.
As a holder, I am confident $25m will be met and around 8 cents in dividends will be paid this FY19... the market seems to be gaining a bit of confidence in STU lately as well.

Doubt whether you’ll get your 8 cents ....unless they use the strong cash flows and super confident about the future trick

[Beagle]

Wonder if share price will go sub $1

Even at $1.13 it’s on a PE of 17 to 18 (based on EPS of 6.5 cents)

Trade at Metro Glass multiples it would be about 60 / 70 cents

But STU a much more robust company with a new computer system.

Where it belongs in my opinion and I know your last sentence was tongue in cheek.

[trader_jackson]

Doubt whether you’ll get your 8 cents ....unless they use the strong cash flows and super confident about the future trick

Yes, I was just thinking, damn... Lucky I only have punting money in STU, although I was hoping it would be more than a PEB style punt, I suppose it really was meant to be nothing more than a punt after all.
Despite all the normalization, it is pretty obvious it is a downgrade.
Lucky the market never really thought STU would produce 25m normalized earnings in the first place anyway, downgrade of 30% or so yet share price has only fallen 9% so far

[Beagle]

Yes, I was just thinking, damn... Lucky I only have punting money in STU, although I was hoping it would be more than a PEB style punt, I suppose it really was meant to be nothing more than a punt after all.
Despite all the normalization, it is pretty obvious it is a downgrade.
Lucky the market never really thought STU would produce 25m normalized earnings in the first place anyway, downgrade of 30% or so yet share price has only fallen 9% so far

LOL give it time, the market's been open for less than a hour. The local 3 legged pig dog riddled with mange, flea's, worms and ticks is more attractive than this mutt !

[winner69]

Yes, I was just thinking, damn... Lucky I only have punting money in STU, although I was hoping it would be more than a PEB style punt, I suppose it really was meant to be nothing more than a punt after all.
Despite all the normalization, it is pretty obvious it is a downgrade.
Lucky the market never really thought STU would produce 25m normalized earnings in the first place anyway, downgrade of 30% or so yet share price has only fallen 9% so far

A sort of positive rerating eh tj