STU - Steel & Tube Holdings

[sb9]

Bullish close for the day with strong volume cleared through at 1.35. Blue skies ahead from hereon me thinks.

[JohnnyTheHorse]

Bullish close for the day with strong volume cleared through at 1.35. Blue skies ahead from hereon me thinks.

Looks to certainly be institutional money on the buy now. Also a decent amount on the sell though, as is often the case with a stock that is up 100%+ in a year (impatient profit taking & rebalancing of portfolios).

All technicals are very strong.

[Shareguy]

Gosh just looking at large imbalance between sell and buy side . Looks like another good day to be had.

[Balance]

Looks to certainly be institutional money on the buy now. Also a decent amount on the sell though, as is often the case with a stock that is up 100%+ in a year (impatient profit taking & rebalancing of portfolios).

All technicals are very strong.

Very clearly institutional buying in action - see how the buyer is mopping up each day the stock on offer by multiple sellers?

Institutional buying vs retail selling - stock is going higher until we see a substantial crossing.

We have not seen any big crossings so fully expect the institutional buying to continue until they can get set in volume.

Meanwhile, stock is getting some proper attention now so can expect more interest to flow to the stock :

NZ Herald Stock Takes : Steel & Tube's lift

Jarden has lifted its earnings forecasts for Steel and Tube Holdings after the company's recent update.

Steel and Tube has provided Ebit guidance of at least $17m for the first half of this financial year compared with $8.9m in the previous corresponding period, reflecting a continuation of the positive momentum seen in the second half of 2021.

The company cited positive market conditions driving volume growth, while also highlighting improved pricing discipline and cost control.

Earlier in the month, Steel and Tube reported a 14 per cent increase in revenue for the first four months of the year, a period that included a substantial slowdown in revenue during the level 4 Covid lockdown.

Jarden noted Steel and Tube's strong order book and the company's expectations that market conditions would remain supportive over the medium term.

"We lift our Ebit forecasts for full-year 2022, 2023, and 2024 by 69 per cent, 40 per cent and 16 per cent, respectively."

"We increase our full year 2022 EBIT forecast to $31.8m on a strong trading update and supportive outlook but recognising there are seven fewer trading days in the second half," Jarden said.

[sb9]

Nice clearance into 1.40s range now, could be 1.50 very soon

[Shareguy]

Mark Malpass might indeed be the unofficial Sharetrader pics for the year winner with Stu – Stu – Stu.

[SailorRob]

I originally bought STU pre Covid at 80c, it was buried pages deep on sharetrader with nobody talking about it. I topped up agressivly at 55c where I was paying less than the value of the steel on the shelf less all liabilities.

In post #1002 I presented a valuation based on its historical performance where I concluded that $1.50 was fair value. I'm far from convinced that the business is now better than it has been in the past. I'm not saying I don't think it's worth more, I'm saying I have no idea. BUT I had a very good idea that it was worth more than 80c.

The bullishness here now all seems to be based on macroeconomic industry predictions, not on the ability of the business to perform better than in the past.

I have one question for you all, if it is clear that this company is worth more than $1.50 and some think it is considerably so... My one question is;

Where are the insiders?

[Rawz]

Where are the insiders?

Is a good CEO a good investor? Or a good saver? A few years ago I was offered a role with a competitor to the company I was working at. When I tried to resign the CEO of the company I was working at said don’t move just for money. He said yes you will earn more, but you will spend more. Life style creep.

Bigger house with heated swimming pool. Beach house. Sports car. Travel business class. 5 star restaurants. $500 bottles of whiskey. Etc. It’s actually easy to spend your way through a large pay packet if you want the lifestyle.

I doubt sharetraders number one investor would make a good CEO. Or chairperson.

Anyways, I didn’t take the job. Have since changed jobs, earn about 30% more than then- funnily enough I don’t save 30% more.

It’s nice to see management buy into a company but just because they don’t I wouldn’t hang my hat on it

[SailorRob]

Where are the insiders?

Is a good CEO a good investor? Or a good saver? A few years ago I was offered a role with a competitor to the company I was working at. When I tried to resign the CEO of the company I was working at said don’t move just for money. He said yes you will earn more, but you will spend more. Life style creep.

Bigger house with heated swimming pool. Beach house. Sports car. Travel business class. 5 star restaurants. $500 bottles of whiskey. Etc. It’s actually easy to spend your way through a large pay packet if you want the lifestyle.

I doubt sharetraders number one investor would make a good CEO. Or chairperson.

Anyways, I didn’t take the job. Have since changed jobs, earn about 30% more than then- funnily enough I don’t save 30% more.

It’s nice to see management buy into a company but just because they don’t I wouldn’t hang my hat on it

Yep I take your point, however that simply wont apply to all of the directors and senior management. Amongst them there will be some that are smart with personal money and would have acsesss to decent ammounts of capital even if they had to borrow against the house.

They know a sure thing with this company way better than we do and if saw the share price heading towards $2 anytime over the next couple of years it would be a no brainer for them. We should be seeing chunky insider purchases here.

[percy]

Yep I take your point, however that simply wont apply to all of the directors and senior management. Amongst them there will be some that are smart with personal money and would have acsesss to decent ammounts of capital even if they had to borrow against the house.

They know a sure thing with this company way better than we do and if saw the share price heading towards $2 anytime over the next couple of years it would be a no brainer for them. We should be seeing chunky insider purchases here.

Directors and CEO with large holdings= Percy with a large holding.
Directors and CEO with no holdings or very small holdings = Percy with no holding,or a very small holding.

Disc.I have a very small STU holding.