STU - Steel & Tube Holdings

[nztx]

Not a lot passing across the floor (okay NZX screens) - just a bit over 209K vol

[Balance]

Courtesy of W69 :

Awesome numbers from Stats NZ re December consents.

Note the reference to non residential activity - looking good for STU!

Westpac say:

December was another strong month for consent issuance, capping off what’s turned out to be a massive year.

On the residential side, issuance was up 4.9% in December (prev. +1.2%). Over the past 12 months, 39,420 new dwellings were consented. That’s the highest level since 1974 and even more impressive given the disruptions associated with the lockdowns in the middle of the year.

Much of the strength in issuance has been centred on Auckland, where just under 16,700 new dwellings were consented over the past year (up 10% vs 2019). That’s more than enough to keep up with population growth, and if that pace can be sustained it will erode the shortage of houses in the region. Underlying this strength in Auckland has been a massive lift in the number of medium density dwellings that are being consented (i.e. townhouses), the rate of which has surged higher in recent months.

We’re also seeing solid issuance in Canterbury, while numbers in other parts of the country have remained firm.

Today’s result reinforces our expectations for a significant rise in residential construction over the coming year. That’s being underpinned by the low level of interest rates and strong gains in house prices, which are boosting developers’ confidence. Yesterday’s labour market data signalled that this is already boosting employment in the construction sector.

We’re also seeing firmness on the non-residential side. While not roaring away like residential activity, spending on commercial buildings has retraced its lockdown-related fall and is holding at a solid level. We think that businesses will remain cautious about capex over the coming year. However, investor demand for commercial property has been resilient and the ongoing recovery in the economy is likely to support increases in commercial building activity over the coming year.

[Balance]

https://www.stuff.co.nz/life-style/h...r-1970s-heyday

Bit more colour to the December building consent numbers.

Major issue for the building & construction activity will be availability of resources to meet the construction demand.

So expect the boom to spread out way into 2022 and beyond.

Extremely positive for STU & FBU.

No wonder Milford is back buying into the sector after selling down and out 2 years ago!

[Filthy]

Extremely positive for STU & FBU

& MPG. plenty of upside for all three

[sb9]

Solid upward run keeps continuing...

[Baa_Baa]

Solid upward run keeps continuing...

Happy as, very bullish sector signals emerging, STU should ride the coat tails of (imo) likely revised guidance upwards for construction sector participants. FBU result will be informative.

TBH, it's not really surprising, with the tons of money thrown at the construction sector vis a vis economic recovery, the companies would have to be complete numpties to not be making hay in this market.

[Balance]

Happy as, very bullish sector signals emerging, STU should ride the coat tails of (imo) likely revised guidance upwards for construction sector participants. FBU result will be informative.

TBH, it's not really surprising, with the tons of money thrown at the construction sector vis a vis economic recovery, the companies would have to be complete numpties to not be making hay in this market.

That they were during the last building & construction boom. That boom actually caused them to blow themselves up!

This time is different however until a few years time when the same bad habits make their way into the corporate culture again?

[Baa_Baa]

That they were during the last building & construction boom. That boom actually caused them to blow themselves up!

This time is different however until a few years time when the same bad habits make their way into the corporate culture again?

Who knows eh, I was into STU in 2012, and out during 2014 with a healthy profit when I became concerned about their execution. Was pretty upset at the time I recall, they seemed to have so much promise. Since then it's been a capital disappointment and long wait until recently. This time I've left it a bit longer getting in to see if they're on board the construction sector boom and feel reasonably confident for the meantime they'll do very well.

My price triggers are a fair way above here, assuming they perform, otherwise a fairly close stop will make the decision for me. Target 50-60% upside from here within 6 months, double that within 12 months, the monthly chart is a better tool for STU imo, smoothes out the noise. Assumes they don't "blow themselves up" again, lol!

[Ferg]

Disclosure: [snip]sold all in December.

Well that aged like milk! The reverse Midas touch strikes again......

I'm ok with that decision given I put the funds into LGND on the NASDAQ. I am curious to see how Ligand plays out.

Good luck to STU holders.

[nztx]

Bluescope report NZ Steel had a boomer of half year

New Zealand Steel is set to report its best half-year result in two years as it benefits from strong domestic construction and cost-cutting started last year.

Didn't this outfit announce it was closing down something a while back ?

Or was it another outfit in the same game ?