STU - Steel & Tube Holdings

[Neophyte]

Order of magnitude might be correct, though - obviously the I in EBIT is currently rising (but this should not be a big issue given their healthy balance sheet), but I recon the T will rise as well.

Anyway - I see potential for a bumper FY ...

Can the "I" rising negatively impact earnings with a positive Net Cash position? I would have thought rising interest costs shouldn't impact a company with no Debt?

[Poet]

Order of magnitude might be correct, though - obviously the I in EBIT is currently rising (but this should not be a big issue given their healthy balance sheet), but I recon the T will rise as well.

Anyway - I see potential for a bumper FY ...

Actually the I in EBIT won't be an issue at all as they currently have no debt, accumulated tax losses will last a little while longer as well. IMO, at this stage in the recovery cycle and the economic cycle it would be appropriate for them to put some debt on the balance sheet and return some capital to long suffering shareholders. I think a capital management plan along those lines is what will next excite the market as we shouldn't see any more profit upgrades (as such) since we are now only two weeks out from the half year close and they should have a very accurate picture of what the actual result should be. And they haven't given FY guidance so there isn't anything to upgrade at this stage. Anyway, running along nicely now and long may it continue

[WAIKEN]

Over many years of investing I have found that multiple earnings upgrades have been a defensive strategy when directors anticipate a potential takeover. Based on that low forward PE this should be at least 3.00

[Balance]

Off to get a few bottles of champagne!

[JohnnyTheHorse]

Today is shaping up to be the largest traded dollar volume in a few years. I'm hoping this ends up like SKT, where there were large sellers constantly selling down, then once that was cleared there were rapid price moves as institutional money had to bid higher and higher to get any volume. We are well set for the next 6 months.

[BlackPeter]

Can the "I" rising negatively impact earnings with a positive Net Cash position? I would have thought rising interest costs shouldn't impact a company with no Debt?

Fair enough ... I just looked at the liabilities to asset ratio when I wrote my post without realizing that the lion's share of these liabilities are lease commitments (which should not be influenced by changes in the I).

Still need to get used to this new accounting standard :

[Shareguy]

Yes. Good plan I’m going to do the same.’

[Beagle]

Especially pleasing when one considers how the rest of the market has not been performing. Looks like NZ50 will have a negative return this year.

I am still in wonderment why anyone would participate in crap like MFB when there are stocks which have been around like STU & PGW which have stood the test of time & economic cycles.

Today is shaping up to be the largest traded dollar volume in a few years. I'm hoping this ends up like SKT, where there were large sellers constantly selling down, then once that was cleared there were rapid price moves as institutional money had to bid higher and higher to get any volume. We are well set for the next 6 months.

Have to agree that this has been a very impressive turnaround story. Strong balance sheet with no debt, 25m in cash = 15 cps.
Very impressive upgrade, (so impressive I can't resist putting my paw up for a few), and solid outlook. TA also provides considerable encouragement.
PE for FY22 looks super cheap. Been around for many decades.
http://nzx-prod-s7fsd7f98s.s3-websit...144/356014.pdf
I think they're building real momentum here and they do look very cheap at $1.50. Gets the dog's tick as having good prospects for 2022.

[WAIKEN]

Good analysis Beagle
Currently it is in grave danger of an undervalued takeover.
We may disagree on KPG but we concur with STU

[sb9]

Large trades off market at 1.50 suggests Instos helping each other out, one wants out and other wants in. Hence not much pull back in price unlike earlier times where price would surge on retail buying and back down later.