STU - Steel & Tube Holdings

[Shareguy]

I must admit I am surprised that the CEO especially has not purchased more when the future looks so positive for Stu. At the end of the day no ones really no’s people’s personal circumstances. For me I would feel a lot better if at the very least that Mark had more shares than I do.

[Rawz]

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.

Hey Percy, how high do you rank insider shareholdings in your criteria for selecting a stock to invest in? Would it be top 3?

[winner69]

I remember the days when STU sold cars and trucks and heavy machinery

[Rawz]

I remember the days when STU sold cars and trucks and heavy machinery

I love it when you come out with these nuggets of gold W69. Like when you said MHJ sold shoes once upon a time.

[winner69]

I love it when you come out with these nuggets of gold W69. Like when you said MHJ sold shoes once upon a time.

Like Michael found out about shoes having a diversified business doesn't often work ......stick to what you know best and do it well

[winner69]

I love it when you come out with these nuggets of gold W69. Like when you said MHJ sold shoes once upon a time.

in the 80's when Brierley Investments was buying almost every company on the NZX the joke around town was that Steel and Tube are safe because they are so useless even Brierley wouldn't buy them

[percy]

Hey Percy, how high do you rank insider shareholdings in your criteria for selecting a stock to invest in? Would it be top 3?

My largest shareholding the ex chairman,directors and ceo hold over 50% of the shares on issue.[PAZ on Unlisted].
My second largest holding the directors do not have significant holdings.[SFF on Unlisted]
Third largest holding is HGH where directors,ceo and other senior staff have very large holdings.

Ranking ? Important,and helps add to making the investment a "high conviction" stock.
I also look at debt,cashflow,sector,and have to decide whether I really under stand the business I am buying.
I love profitable companies that are growing eps and have a high ROE .

PS.I recently bought DGC, well actually DGL in Aussie.Sold yesterday as I realised I had no idea what their eps would be.
I also bought a couple of months ago ALF, as I could see Chris Swasbrook's Elevation Capital taking control of the business,and knew they would drive the business .

[BlackPeter]

Hey Percy, how high do you rank insider shareholdings in your criteria for selecting a stock to invest in? Would it be top 3?

CBL Insurance used to have significant insider shareholdings - and where did that bring them? Similar (different industry and less criminal energy): SML.

Insider holdings are an indicator as good as any other - interesting, but what it really means for a specific company depends on a lot of things you can't put on a checklist.

[percy]

CBL Insurance used to have significant insider shareholdings - and where did that bring them? Similar (different industry and less criminal energy): SML.

Insider holdings are an indicator as good as any other - interesting, but what it really means for a specific company depends on a lot of things you can't put on a checklist.

Think EBO,FRE,HLG,MFT and many others.It really works.

[BlackPeter]

Think EBO,FRE,HLG,MFT and many others.It really works.

Sometimes it does, sometimes it doesn't. As I said - it depends :

If the insiders are great managers, do have plenty of money, operate in a successful industry and are in addition to all of that good investors, than it is probably a good sign if they hold heaps. Otherwise it does not mean anything.

It is a bit like with our rooster. If he stands on his preferred position on top of the dung heap and starts crowing, the old peasant wisdom is saying that the weather will change - or it will stay as it is.

I do have plenty of examples and am able to verify both options with evidence ;