STU - Steel & Tube Holdings

[nztx]

Additional levels of more expensive inventory, or the higher cost of inventory carried now
has swallowed the Cash ?

What happens when & if inventory supplies & costs normalise or even fall ?

What goes up usually comes down, sometimes in a hurry too, as
market conditions change

A large inventory impairment expense (yet again) ?

Would STU be nimble enough to quit high cost inventory in a hurry
or are they only importing / buying to cover fixed customer orders ?

Look no further than the past 5 year STU track record for history of
some of the write downs, impairments & losses and who stumped up
after the event to fix the job

Folk think things look like plain sailing, while behind the scene, the market is rapidly
changing - only reported some months down the track

Sorry to crash the images of all now recovered & sweet, but commodity & materials
markets can be especially volatile ..

Look no further than Magnesium, Li, Vanadium etc etc and of course Fe
The volatility is seem in the global effects of supply & demands of these.

[winner69]

Additional levels of more expensive inventory, or the higher cost of inventory carried now
has swallowed the Cash ?

What happens when & if inventory supplies & costs normalise or even fall ?

A large inventory impairment expense (yet again) ?

ZEL see huge swings in profitability at times when input costs move up or down big time. …and they report two profits …..historic cost and replacement cost

We need to to have faith in STU management that their systems are working properly now and that they keep track of the stock and the stock they’ve got is what they need and won’t become obsolete,

Didn’t they need to ‘write off ‘ more than $20m of stock a few years ago. …stuff they couldn’t find and stuff that was obsolete

[nztx]

ZEL see huge swings in profitability at times when input costs move up or down big time. …and they report two profits …..historic cost and replacement cost

We need to to have faith in STU management that their systems are working properly now and that they keep track of the stock and the stock they’ve got is what they need and won’t become obsolete,

Didn’t they need to ‘write off ‘ more than $20m of stock a few years ago. …stuff they couldn’t find and stuff that was obsolete

I think you're right - there was a large inventory write off a few years back

The proof with STU will be when the pudding comes out- maybe not next reporting but further periods ahead
on how nimble the Chefs at STU are in dealing with market condition changes IMO

The Chinese influence on the Fe price is fairly large

BHP seem to recording a good run currently from my reading

Gina Reinhart also appears to be having a good run (in Oz)

The Tasmanian Iron Pellet GRR also appear to be having a good run

Periodically China screams loudly about 'realistic pricing' on it's buys of materials

but all that could easily change - just one Ozzie politician with a few words out of place
is all it could take, among other things

Movements in global markets & conditions will all be affecting STU's COGS, purchasing
and availability of replacement stock I imagine ..

[winner69]

Shareguy et al ….do some raving about STU to cheer up those worried about the share price crashing ….give them cause not too worry

[winner69]

STU share pirice hit 143 this morning ..... lowest it's been this year

Must be something to do this upcoming recession ..... or maybe the soon to be nickel shortage

[Rawz]

Winner has gone fishing again. What's in the STU sea? No bites thus far

[winner69]

Winner has gone fishing again. What's in the STU sea? No bites thus far

Exciting flyover of 4 jets a while ago was pretty noisy ….apparently some old airforce chief funeral deserved such an honour.

[alokdhir]

Winner has gone fishing again. What's in the STU sea? No bites thus far

W69 has a point ...Since this war started both steel stocks ...VSL and STU have not done well ...for reasons which will be known to us latter ...But it did effect them ...

[Rawz]

W69 has a point ...Since this war started both steel stocks ...VSL and STU have not done well ...for reasons which will be known to us latter ...But it did effect them ...

Im looking at my portfolio and watchlist of stocks i want to add to my portfolio.. and nothing doing well mate

[Sparky669]

You are not alone..None of the NZX stocks was above its 20d moving average this morning, and Nasdaq is crowded with dumpers since the war started.