STU - Steel & Tube Holdings

**Greekwatchdog** · 22-07-2021, 01:56 PM

I take their advice for what it is. DYOR its your money your investing! That way buck stops with yourself.
There are always some who are and they deserve the rewards. STU management have been rather poor over the years and then considering they knocked back FBU offer of $1.95. Shareholders never had a chance so they had better deliver to them. Its a long way to $1.95.

**SailorRob** · 22-07-2021, 10:39 PM

Originally Posted by Balance

If sp stays around current level, a share buyback will be a good use for the $25m.

As you probably know I've been beating the drum on this for a while, most people didn't seem to understand and wanted dividends...

I was demanding a large share buy back sub $1. Would have been the cleverest use of capital ever achieved by this company and provided share holders with a MASSIVE return.

Now at $1.20 this opportunity is vastly diminished but would still create value far above a dividend.

Go back through the thread and see what some people were saying in response to my buyback suggestion. The level of sophistication and ability to comprehend simple math is astounding.

**nztx** · 22-07-2021, 11:10 PM

Lets hope the Inventory Management system has seen enhanced attention so things don't come out
half baked, exhibiting signs of quantities of invisible AWOL lines & overstatements for expensing off in
a large pile again ..

Remember Boys & Girls - the Beancounters & Board at STU have or should be seeing AcCuRaTe monthly or
at bare minimum - Quarterly figures as the year runs through - so this sort of nonsense of the past should no
longer be tolerated from STU in any future shock announcements accompanied by a shower of red ink ..

Hopefully STU have learnt well & purged out all Bad Habits & Tendencies seen in the past ..

**Arbroath** · 23-07-2021, 10:27 AM

Originally Posted by SailorRob

As you probably know I've been beating the drum on this for a while, most people didn't seem to understand and wanted dividends...

I was demanding a large share buy back sub $1. Would have been the cleverest use of capital ever achieved by this company and provided share holders with a MASSIVE return.

Now at $1.20 this opportunity is vastly diminished but would still create value far above a dividend.

Go back through the thread and see what some people were saying in response to my buyback suggestion. The level of sophistication and ability to comprehend simple math is astounding.

SailorRob I agree with you 100%. Its fair enough that through the early months of Covid the Board were probably too scared to consider a buyback but at least for a few months now (and sub $1) a buyback was a great use of capital. Remember they raised at $1.05 when they were in a spot of bother and that was a huge discount to the takeover bids at $1.75 and $1.95 that they rejected as insufficient!

No excuses for not doing a buyback when they can't pay imputed dividends. As things are now I'd rather they spent $25m over 12-18 months buying back stock sporadically at anything sub $1.30. They could reduce shares on issue by around 12%.

However, given the Boards history don't hold your breadth!

**Ferg** · 23-07-2021, 04:40 PM

Any word on how STU are navigating their way through current supply-side issues of steel sourced from Asia? I'm assuming STU buys (some) steel out of Asia - is that correct? Also, any word on STU's response to the dumping claims being made by NZ Steel from Chinese and Korean mills? Or are they not impacted by this? I believe the complaint is about AZ rolled steel.

**winner69** · 29-07-2021, 08:35 AM

Vulcan looking to list on NZX abd ASX

Another option if one wants to invest in industry

And multiplies could be interesting ….should show how people cheap STU is at the moment

**winner69** · 29-07-2021, 08:49 AM

Talk of Vulcan listing at 10 times EBITDA

STU valued at same about $2.50 (my rough sums)

Goodness gracious me

**Beagle** · 29-07-2021, 09:04 AM

Originally Posted by Greekwatchdog

I take their advice for what it is. DYOR its your money your investing! That way buck stops with yourself.
There are always some who are and they deserve the rewards. STU management have been rather poor over the years and then considering they knocked back FBU offer of $1.95. Shareholders never had a chance so they had better deliver to them. Its a long way to $1.95.

I can never forgive gross arrogance and incompetence like that which at least in my mind was a gross breech of their fiduciary duty to put shareholders interests first and was potentially actionable. Its clear management and the board put their own interests, (scoffing at the trough), ahead of shareholders. Quite aside from that who knows if there aren't more skeletons in the closet in regard to dodgy steel.