STU - Steel & Tube Holdings

[SailorRob]

Holding Apple for 20 years is damn impressive. Only a small handful of people in the world would have done that. Did you get it during the Dotcom run up or aftermath? Either way that's a life changing investment.

Yes easy worth $2 with a good result and in the context of current market multiples, I'm going of historical performance and long term average market multiples. With a good result and multiple expansion to even 2/3 of the NZX I'd imagine well over $2.

[Shareguy]

My Apple shares have been one of the best share investments I have ever made. On saying that I have sold down and taken profits over the years but still have a significant amount that owe me nothing. A great company with products I use and love so no plans on selling.

As far as STU is concerned only time will tell I guess.

[Dassets]

I expect there will be change. If anyone wants to pm me with any thoughts that they don't want to go on open forum feel free. If that is breaking any rule then please do not. It would help if you were a shareholder and help more if you had a few. It would be good to exchange ideas.

[SailorRob]

I think I've posted before that I have workmates that use them for retail supply in Whangarei, their experience is roughly comparable to what you would expect walking into a steel supply shop in a Southern Greek or Italian town, or perhaps in the former USSR.

Another mate is the GM of a very large construction company that uses a lot of structural steel and he says they are fine and pretty similar to the competitors. Two different markets I guess.

[Dassets]

Does anyone know or can find out how many SKU don't turn over every 6 and 12 months?

[winner69]

Does anyone know or can find out how many SKU don't turn over every 6 and 12 months?

Why you asking Dassets?

Good question though

Wasn't that long ago they wrote $24m of aged, obsolete and non-existent stock

Surely not going to do a repeat of that?

[Beagle]

Slow day on the NZX section of this forum when the last comment in this NZX section was 7 hours ago !!

Have they squared away ALL issues they've had with dodgy Chinese steel ? How can you be sure there's no legacy or ongoing issues with that ?

[Dassets]

I want to check whether that exercise in inventory rationalisation was a complete one. With a couple of things I have heard I suspect it wasn't. But I wouldn't be expecting a write-down. I would expect them to fully incorporate all costs attributable to that stock including a risk rating that flowed through to final cost of capital. I am holding a bit of stock through a broker nominee which I have said before, but will repeat that disclosure. I have some other concerns. Also if this is a reasonably completed turnaround with just the icing to put on the cake, I will beg to differ. I would also like to know exactly what commodity pricing risk they carry and maybe inventory levels. I want to know what form of CAPM they are using or in its absence what alternative they use. Cheers all.

[winner69]

I want to check whether that exercise in inventory rationalisation was a complete one. With a couple of things I have heard I suspect it wasn't. But I wouldn't be expecting a write-down. I would expect them to fully incorporate all costs attributable to that stock including a risk rating that flowed through to final cost of capital. I am holding a bit of stock through a broker nominee which I have said before, but will repeat that disclosure. I have some other concerns. Also if this is a reasonably completed turnaround with just the icing to put on the cake, I will beg to differ. I would also like to know exactly what commodity pricing risk they carry and maybe inventory levels. I want to know what form of CAPM they are using or in its absence what alternative they use. Cheers all.

You seem a bit concerned Dassets

I note that in F21 they increased their Provision for slow moving and aged stock by $1.3m to $2.2m (about 2% of total inventory)

Maybe they are top of past issues ....but your comments are quite intriguing

[Balance]

I want to check whether that exercise in inventory rationalisation was a complete one. With a couple of things I have heard I suspect it wasn't. But I wouldn't be expecting a write-down. I would expect them to fully incorporate all costs attributable to that stock including a risk rating that flowed through to final cost of capital. I am holding a bit of stock through a broker nominee which I have said before, but will repeat that disclosure. I have some other concerns. Also if this is a reasonably completed turnaround with just the icing to put on the cake, I will beg to differ. I would also like to know exactly what commodity pricing risk they carry and maybe inventory levels. I want to know what form of CAPM they are using or in its absence what alternative they use. Cheers all.

I have not read any postings here suggesting that STU has completed an operational & structural turnaround.

In fact, the prevailing view is that STU still has some distance to go before it realizes its full potential - reason for the sp being where it is rather than, say $2.00.

No complaints here as we all got to buy FBU cheap again!

STU is going through exactly the same exercise as FBU - difference being that STU does not have as diversified and as deep an operational base as FBU, so recovery will be slower and take longer.

Unfolding even as we post here on ST!!!!