STU - Steel & Tube Holdings

[Shareguy]

Yes thanks Balance and winner69. As far as margin goes Stu stated margin was a result of intense competition. I think they just dropped the ball. Stu have a history of not looking after thier top performers and as a result Vulcan and others gained the best staff. I suggest the low margin is more a case of sales people unsure of market pricing and lacking customer relationships. But things look different now ….

[Muse]

I understand STU and Vulcan run very different ERPs. Vulcan apparently built theirs years and years ago and it is said to be excellent and tailored for its business. Dont know much about STUs but I recall they had some terrible inventory problems years ago. STU run with far more skus which decreases turnover and results in more inventory write offs. Vulcans delivered margins far higher because of their own massive transport fleet - which stu dont have and eats away from their profit margins.

[Balance]

Yes thanks Balance and winner69. As far as margin goes Stu stated margin was a result of intense competition. I think they just dropped the ball. Stu have a history of not looking after thier top performers and as a result Vulcan and others gained the best staff. I suggest the low margin is more a case of sales people unsure of market pricing and lacking customer relationships. But things look different now ….

Sounds like PGW 3 years ago, and glad to say that PGW has been an excellent performer since its restructuring.

Meanwhile, STU has been one of the better performers YTD so far (up 28% + dividend) in an overall flat NZ market so looking forward to more recognition of this turnaround story by the market.

[winner69]

You’d think steel people happy with these numbers …home consents up 25% last 12 months and nonresidential up 10%

Maybe STU share price chart will look like this in a years time

[Balance]

You’d think steel people happy with these numbers …home consents up 25% last 12 months and nonresidential up 10%

Maybe STU share price chart will look like this in a years time

Looking forward to 4th Nov!

[Snow Leopard]

Thought for the day:

Instead of assuming that STU should trade at a higher value because Vulcan is way up there, just think of VSL as another overpriced IPO which will come down to reality over the next six months.

Disc: hold STU

[nztx]

Thought for the day:

Instead of assuming that STU should trade at a higher value because Vulcan is way up there, just think of VSL as another overpriced IPO which will come down to reality over the next six months.

Disc: hold STU

Good thinking there .. just look at where NPH, HMY & MFB are at now

[SailorRob]

SailerRob well for me I am more interested in other points of view to confirm my own valuation or otherwise. I’m not a trader and looking for long term positions in company’s that I think are substantially undervalued. If anyone wants to sell at current prices good luck to them.

Exactly, which is why I find the constant talk of wishing for the price to rise odd. You and I should want one thing only, low prices. That's how we will make money. Once the undervaluation is gone then we're stuffed.

[nztx]

Exactly, which is why I find the constant talk of wishing for the price to rise odd. You and I should want one thing only, low prices. That's how we will make money. Once the undervaluation is gone then we're stuffed.

It's something more than that - SR .. finding unique value situations where the market is yet to recognise that there may be
further or hidden unrecognised value. Unless the ride looks really good for further enhancement, in some cases when all are
jumping onboard - that's the time to be looking for the next opportunity

Some may regard today's price a bargain, to others it may have done it's dash with further likely upswing a smaller fraction
what they have seen

[Shareguy]

I think you will find today’s price is indeed a bargain.