STU - Steel & Tube Holdings

[SailorRob]

Yep, nothing in this valuation assumes anything like great performance going forward. Just staying solvent and doing some business is all I need. One day the value of the assets will be exposed one way or another.

[Waikaka]

Yep, nothing in this valuation assumes anything like great performance going forward. Just staying solvent and doing some business is all I need. One day the value of the assets will be exposed one way or another.

STU is about 2% of my portfolio. Your prompt brought me back to have a relook.

I don't mind them consolidating sites but I hate it when they think it is such a good thing to sell off all their property. Really guts the underlying assets and margin of safety.

I like the cash flow and reasonable expectation that they will do well out of large infrastructure but could well be offset by residential and property related declines.
Sounds like they have a few big jobs coming up (CRL, Napier Port, Metro Sports in chch and Mangere bridge patch up). Suspect these will happen even in a post covid world, even if some delays in timing.

Been picking up small amounts but pretty modest.

[nztx]

STU is about 2% of my portfolio. Your prompt brought me back to have a relook.

I don't mind them consolidating sites but I hate it when they think it is such a good thing to sell off all their property. Really guts the underlying assets and margin of safety.

I like the cash flow and reasonable expectation that they will do well out of large infrastructure but could well be offset by residential and property related declines.
Sounds like they have a few big jobs coming up (CRL, Napier Port, Metro Sports in chch and Mangere bridge patch up). Suspect these will happen even in a post covid world, even if some delays in timing.

Been picking up small amounts but pretty modest.

I find it hard to see the same optimism on STU & so have recently adopted
the stance that more favourable opportunities appear to be elsewhere..

[SailorRob]

I find it hard to see the same optimism on STU & so have recently adopted
the stance that more favourable opportunities appear to be elsewhere..

The optimism is purely based on the price. It's one of most undervalued companies in the world based on current assets minus all liabilities vs market cap.

I ran a screen on the whole US market and 26 companies were cheaper on a Benjamin Graham NET NET basis.

Waikaka part of me agrees on the property sale theory but another part of me asks what business does any business have owning commercial property unless that's their business? What a lot of capital to have tied up doing nothing. As far as margin of safety goes though I agree but the proceeds could go to developing a margin of safety in other ways.

My NET NET analysis attributes zero to the value of all property plant and equipment anyway.

[winner69]

Sad as it is STU dispensing with 200 staff

Sign of the times

http://nzx-prod-s7fsd7f98s.s3-websit...208/321421.pdf


govt says construction going to be busy as...Stu don’t think so?

[winner69]

No doubt debt levels will rise again

[Blue Horseshoe]

Like the last paragraph.

“Steel & Tube is well positioned for the anticipated Government infrastructure projects. We continue to lead industry standards, and have secured further customer wins during the lock-down, including a significant Government roofing contract and other large projects are being finalised.”

[winner69]

Like the last paragraph.

“Steel & Tube is well positioned for the anticipated Government infrastructure projects. We continue to lead industry standards, and have secured further customer wins during the lock-down, including a significant Government roofing contract and other large projects are being finalised.”

All hunky dory then ...no worries

[winner69]

Wonder how many times you can emerge as a ‘stronger and more resilient company’

I think this is going to be the sixth time in recent years

[artemis]

Rounds of redundancies and layoffs have for decades been an effective way of easing out low performers and closing down locations with current or future issues. Those location issues might be financial, geographical, skill availability.