STU - Steel & Tube Holdings

[Balance]

Give it a few weeks (post 30 June year end) and I am picking STU to be one of the first companies to provide some figures/numbers with a nice earnings upgrade.

My neighbor in front had to wait 6 weeks to get his steel beams for his house reno and that's after he paid up to get them.

So there must be some very nice margin improvements happening out there with steel prices going up and no requirement to compete on prices like in the last few years.

Just been told by one of my contacts in the building industry that STU has advised them of further price increases in July and for certain products, to expect further delays in deliveries as well.

Things are getting really grim out there for the independent building industry players who were buying their construction & building materials (in previous years) like steel from direct importers who are now squeezed out of the supply chain. Only loyal & long staying customers are getting ready access to supplies - pays to have a good relationship with established distributors like STU.

[BlackPeter]

Just been told by one of my contacts in the building industry that STU has advised them of further price increases in July and for certain products, to expect further delays in deliveries as well.

Things are getting really grim out there for the independent building industry players who were buying their construction & building materials (in previous years) like steel from direct importers who are now squeezed out of the supply chain. Only loyal & long staying customers are getting ready access to supplies - pays to have a good relationship with established distributors like STU.

Good to know ... well, for STU share holders this is :

Discl: holding;

[Snow Leopard]

Just because STU is charging more does not mean that they are making more, possibly the opposite.

Disc: Hold

[BlackPeter]

Just because STU is charging more does not mean that they are making more, possibly the opposite.

Disc: Hold

True, however - given that they are selling into a booming market with supply constraints (i.e. a sellers market) ... if they don't make money in this situation, they should not run a company ...

[Sideshow Bob]

Wind Farm Project with Meridian

Steel & Tube Wins Significant Wind Farm Contract - NZX, New Zealand’s Exchange

[Sideshow Bob]

Wind Farm Project with Meridian

Steel & Tube Wins Significant Wind Farm Contract - NZX, New Zealand’s Exchange

[Snow Leopard]

$7.1M value over 3 years.

Better than nothing, hopefully.

[freebee]

$7.1M value over 3 years.

Better than nothing, hopefully.

I like the sound of last line in the announcement:

We have a disciplined approach to tendering for large projects to ensure an appropriate return for our business and are delighted to have secured this contract on the basis of our value proposition, technical support and expertise.”

Disc: Happy holder

[Sideshow Bob]

$7.1M value over 3 years.

Better than nothing, hopefully.

Wasn't marked as price sensitive

[Arbroath]

Wasn't marked as price sensitive

That would be because it represents around 0.5% of revenues likely over the 3 year period = not material.

Still good news though at the margin