STU - Steel & Tube Holdings

**Shareguy** · 10-05-2021, 10:59 AM

Caught up over the weekend with someone in the industry. World wide steel prices have increased dramatically in some cases over 40%. The roofing division is Flat-stick and I would imagine that Stu would’ve sold the current inventory at replacement cost therefore making a big gain. Still extremely undervalued in my opinion and I’m expecting an upgrade.

**thegreatestben** · 10-05-2021, 11:59 AM

Originally Posted by Shepherd

Hi BeeBop, that sounds like interesting stuff, but please explain more, - what is GFA? and please explain hw these rebates work?
Cheers

GFA in construction terms is Gross Floor Area

**mfd** · 10-05-2021, 12:07 PM

Originally Posted by thegreatestben

GFA in construction terms is Gross Floor Area

I have one of those underneath my oven.

**Entrep** · 10-05-2021, 06:17 PM

Down massively today for some reason

**Shepherd** · 10-05-2021, 10:01 PM

Thanks for the definition.

**Habits** · 10-05-2021, 10:18 PM

Originally Posted by mfd

I have one of those underneath my oven.

Took me a while to get that, very well done

**BeeBop** · 11-05-2021, 11:25 AM

Originally Posted by Shepherd

Hi BeeBop, that sounds like interesting stuff, but please explain more, - what is GFA? and please explain hw these rebates work?
Cheers

Rebates I think are endemic in construction i.e. a purchaser is enticed to put most of their orders through a company and provided they meet a certain 'target' volume, they will get a cash-back or equivalent. People think it is the cost of materials that is causing the problem but it is way way way more than that. There is constant ticket clipping: 'clients' are valuable; council seem to demand over the top testing; utility companies have crazy pricing (some can bring a quote of nearly 400k down to 15k when 'moved' to another way of doing things). If costs of about 10k are added to a unit by the time it is multiplied up by the developers margin, real estate fees and GST, the added cost to the end purchaser will be around 14k. No wonder Williams etc can do it cheaply as they will be avoiding much of the ticket clipping....there is a lot of money to be made out of the mum and dad backyard developers and Williams will be able to feed off the price 'buoyancy' provided.