STU - Steel & Tube Holdings

[nztx]

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.

Ditto .. likewise .. playing with the Green Med Bakky stonks on the rise up there recently ..

[Balance]

Thanks for that infor, w69.

Expanding further :

https://cdn-api.markitdigital.com/ap...df02a206a39ff4

NZ & Pacific operations improved substantially in H1 2021 - EBIT expected to be in excess of $55m.

Compares with $12.9m in H1 F2020.

Given that STU is Bluescope's major distributor in NZ, augers very well for STU operations.

And here's FBU's H1 F21 commentary on their steel operations :

"EBIT in the Steel business improved by $17 million compared to the prior period, supported by strong price governance, a focus on profitable sales mix and reductions in labour and property costs."

"In the pipes (Iplex, Humes) and steel businesses, gross revenue was up by 3%. These businesses experienced subdued volumes in the infrastructure and vertical construction markets, whilst civil and subdivision work showed good demand, particularly in the Auckland region."

Again, augers well for STU when they report next week - 26 Feb.

Reinstatement of dividend (however small) will be another positive development for the sp.

[sb9]

Reinstatement of dividend (however small) will be another positive development for the sp.

As per their recent trading update comments..

• Cash position remains strong with cash of approximately $24m as at the end of November 2020 (up from $7m net cash at 30 June 2020) with zero debt.

Based above and under current ultra low-interest environment, I'm picking dividend reinstatement has a strong possibility (1 to 2 cents may be)..

[Poet]

As per their recent trading update comments..

• Cash position remains strong with cash of approximately $24m as at the end of November 2020 (up from $7m net cash at 30 June 2020) with zero debt.

Based above and under current ultra low-interest environment, I'm picking dividend reinstatement has a strong possibility (1 to 2 cents may be)..

No reason they couldn't pay 5c dividend ($8m) - their cash is building up and what other use do they have for it? That would put a rocket under sp wouldn't it?
It would be unimputed though given their recent losses

[RTM]

No reason they couldn't pay 5c dividend ($8m) - their cash is building up and what other use do they have for it? That would put a rocket under sp wouldn't it?
It would be unimputed though given their recent losses

I'd rather we had the money than the company. Be great if they did.

[Balance]

No reason they couldn't pay 5c dividend ($8m) - their cash is building up and what other use do they have for it? That would put a rocket under sp wouldn't it?
It would be unimputed though given their recent losses

FBU has declared a dividend so there's every reason for STU to pay a dividend.

Given the trading update was in November 2020, there can only be surprises on the upside imo.

If there was any adverse development since the update, that would have been disclosed by now.

[nztx]

Don't be too greedy now - the training wheels are probably still on after recent earlier years' trading cards
and ledger print outs..

Last time - Acquire some earning targets for a time was an answer before that came back to bite hard
before things were put on the blocks for a period of recovery .. with all the write-offs under the sun

Many may not have too much confidence in the short time since the big bad times, the collective bottoms
around the Board table have had enough time to condition themselves to better prevailing winds and
to maintain the ship on reasonable course without going back to old bad habits with follow on consequences ..

If the wind direction should change - what then ? .. and they could easily change too ..

[Poet]

Don't be too greedy now - the training wheels are probably still on after recent earlier years' trading cards
and ledger print outs..

Last time - Acquire some earning targets for a time was an answer before that came back to bite hard
before things were put on the blocks for a period of recovery .. with all the write-offs under the sun

Many may not have too much confidence in the short time since the big bad times, the collective bottoms
around the Board table have had enough time to condition themselves to better prevailing winds and
to maintain the ship on reasonable course without going back to old bad habits with follow on consequences ..

If the wind direction should change - what then ? .. and they could easily change too ..

A company like this shouldn't have $24 m in the bank, it should have an appropriate level of working capital and an appropriate level of debt (appropriate, that is, to its sustainable ebitda).

The fact that we are prioritising paying down debt (to zero) is due to the poor decisions taken by poor management in the past. At some stage we should leverage appropriately and start to pay the long suffering shareholders some return.

[nztx]

A company like this shouldn't have $24 m in the bank, it should have an appropriate level of working capital and an appropriate level of debt (appropriate, that is, to its sustainable ebitda).

The fact that we are prioritising paying down debt (to zero) is due to the poor decisions taken by poor management in the past. At some stage we should leverage appropriately and start to pay the long suffering shareholders some return.

Agree with you there

but STU probably has recent bad memories of Debt & what happened in the past 4 years ..

So from this is it not lessons of the past not learned on what their Balance Sheet should look like optimised ?

Maybe the new Finance big wig could have some better ideas ?

[Baa_Baa]

Good result imo. Gltah