STU - Steel & Tube Holdings

[winner69]

huge discounted rights issue , must really need the money bad at such a big discount

https://www.nzx.com/announcements/321785

More trouble at mill than what has been disclosed ...hope wasnt a strategy after all.

At least getting in early .....if there is a big downturn next year punters might not be too keen to part with their cash

[winner69]

They say -

“The capital raised will be used to repay debt, strengthening our balance sheet and giving us greater flexibility to execute our strategy and deliver better value for our shareholders. In addition, we expect the capital raising to strengthen Steel & Tube’s share register and help create liquidity which will benefit all shareholders.”

Like it when one plays the old ‘liquidity’ card ....clever

[percy]

They say -

“The capital raised will be used to repay debt, strengthening our balance sheet and giving us greater flexibility to execute our strategy and deliver better value for our shareholders. In addition, we expect the capital raising to strengthen Steel & Tube’s share register and help create liquidity which will benefit all shareholders.”

Like it when one plays the old ‘liquidity’ card ....clever

Certainly will with 82% more shares on issue.
Going from current 90.6mil shares to 165.6mil.

[Beagle]

A sector to avoid like the plague in my opinion. They've been so "successful" at delivering value for shareholders to date why anyone would trust them with more is beyond my comprehension.

[Balance]

Rights issue inevitable imo.

Debt of over $100m and market cap of $140m - trading on an enterprise multiple of 15 times!

Banks will want the debt down to $60m as a minimum in the credit risk adverse environment we have entered.

http://www.sharechat.co.nz/article/7...aigs-says.html

Craigs must be reading this site for inspiration?

Totally expected.

[winner69]

First part of cap raise done and dusted with $20m raised

Chair of Steel & Tube, Susan Paterson, said: “We received strong support from existing institutional investors and were pleased to welcome several new large investors to the Steel & Tube register, including a number of New Zealand and Australian investment funds.The interest in the stock and significant support by sophisticated and rigorous investors, demonstrated confidence in the refresh of the board and management and the strategic direction of the company.


Great paragraph by Susan .....all hunky dory going forward ....but methinks most existing investors just averaging down and new investors smell a bargain.

Good time to have a punt I reckon ....wonder what it will open at today .....I put a bid in at 120?

[trader_jackson]

Will this be like Tower and be the beginning of a turnaround?
Or will STU keep stumbling along...
40m EBITDA in FY21 would make the cap raise price pretty cheap

[Beagle]

First part of cap raise done and dusted with $20m raised

Chair of Steel & Tube, Susan Paterson, said: “We received strong support from existing institutional investors and were pleased to welcome several new large investors to the Steel & Tube register, including a number of New Zealand and Australian investment funds.The interest in the stock and significant support by sophisticated and rigorous investors, demonstrated confidence in the refresh of the board and management and the strategic direction of the company.


Great paragraph by Susan .....all hunky dory going forward ....but methinks most existing investors just averaging down and new investors smell a bargain.

Good time to have a punt I reckon ....wonder what it will open at today .....I put a bid in at 120?

People buying PPH shares off the founder at over $4 thought they'd got a bargain...just saying ! Is there enough flea powder in the country to fix the infestation on this dog ?

You can take this companies ability to forecast with a grain of salt. Notice how they said normalised profits will be XYZ. Doesn't that make one wonder how many more so called one off extraordinary items, restructuring, e.t.c. will need to be still accounted for ? If you see a cockroach in the kitchen and squash it there's ALWAYS a LOT more.

[Snow Leopard]

Think there will nearly 166M shares after all this is done.

FY19 Estimate $25M EBIT would then be about $0.104 NPAT.

'Normalised' $35M EBIT down the road would then be about 'normalised' $0.148 NPAT.


Might be worth a small punt at $1.28 cum rights or $1.20 ex rights for me, but just as happy to stay off the register.

[Balance]

Think there will nearly 166M shares after all this is done.

FY19 Estimate $25M EBIT would then be about $0.104 NPAT.

'Normalised' $35M EBIT down the road would then be about 'normalised' $0.148 NPAT.

Might be worth a small punt at $1.28 cum rights or $1.20 ex rights for me, but just as happy to stay off the register.

https://www.nzx.com/announcements/321830

Read this placement very carefully and consider where the sp is likely to go in the short term.