STU - Steel & Tube Holdings

[winner69]

It was stated in a company announcement to the NZ stock exchange on 23rd May 2018 so unless you think they have deliberately deceived the market, it is true.

Wasn’t implying anything at all

They did use the word expected on 23rd May

[percy]

Could "We live in hope" be more to the point,than expected.?

We live in interesting times.

[Joshuatree]

The result meant to be 31st August, Friday. They brought forward to wed, 29th August, Wednesday.

what I see, the right offer close Monday, 3rd September. They would like to present it first so the shareholders can get Thursday and Friday to decide to get in the right offer?

Yep thats good we can give it a final chance/decision. Some new management in place i think? Mind you Beagle thinks it can go down even more from here, Gaynor thinks otherwise by the looks of his actions.

[winner69]

https://steelandtube.co.nz/file/9175...token=LkNTFiE-

EBIT 25m for the next 2019 forecast...once capital raised..debts will be reduced to minimum from recent $100 debts...

once capital raised done done and dusted..will see the sp slowly raise?

That preso presents a compelling case to get in while the shares are cheap as ....very impressive

EBIT going from $14m this year to $25m next year and then $40m a year or so later is very impressive. (even though they were achieving those sort of figures a few years ago)

The $25m is going to mean F19 EPS is about 10 cents (I think allowing for the new shares) ....so based on this how high can the share price go over the next year?

Only thing that would worry me is that all the talk about the booming market and all the great things to improve efficiiency / productivity etc echos of Metro Glass.

[Beagle]

That preso presents a compelling case to get in while the shares are cheap as ....very impressive

EBIT going from $14m this year to $25m next year and then $40m a year or so later is very impressive. (even though they were achieving those sort of figures a few years ago)

The $25m is going to mean F19 EPS is about 10 cents (I think allowing for the new shares) ....so based on this how high can the share price go over the next year?

Only thing that would worry me is that all the talk about the booming market and all the great things to improve efficiiency / productivity etc echos of Metro Glass.

Don't forget to take their forecasts with a grain of salt. Have a look at the forward PE of MPG !
Heck you can buy a growing company like TNR (with hopefully no skeletons in the closet) a genuine growth company if Percy is right, on a forward PE of only 9.75.

[King1212]

Yep thats good we can give it a final chance/decision. Some new management in place i think? Mind you Beagle thinks it can go down even more from here, Gaynor thinks otherwise by the looks of his actions.

Joshuatree, this company remind me with VOC asx...downgrade, restructure, write off...etc and finally VOC turn around...so...good potential? STU makes profit but just because the write off..

[winner69]

Joshuatree, this company remind me with VOC asx...downgrade, restructure, write off...etc and finally VOC turn around...so...good potential? STU makes profit but just because the write off..

That VOC an interesting chart

[Joshuatree]

HaHa , still holding VOC and enjoying the bounce, just 100% more lift to go and im in the money. The CEO built it up buying buying buying paying far too much , spinning bull dust then sold out at the top!! And left, b'stard.

I hold STU indirectly. The options are,sell at the bottom, do nothing and be diluted or take up spp and believe newish management really have sorted it (ERP scapegoat, legacy issues , insurance will pay bulk of fines for dodgy mesh). Im thinking the last approach atp.

[Filthy]

The options are,sell at the bottom, do nothing and be diluted or take up spp and believe newish management really have sorted it (ERP scapegoat, legacy issues , insurance will pay bulk of fines for dodgy mesh). Im thinking the last approach atp.

pretty much sums it up. damned no matter what you do really eh JT.
I have a small holding, purchased before the 'building boom'.... lesson learnt; say no more.
Its not huge sums so not that bothered, but will throw some extra cash at it and average down. Long term play though.
I don't believe insurance will cover anything (cant insure negligence?) and then there is still that pesky risk of a class action (where no one wins except the lawyer trying to instigate it).
Not expecting a divi anytime soon either, but reckon those beaten down building stocks are all at the bottom of their cycles and should come good eventually.
new management look okay. will watch to see how it plays out

[Baa_Baa]

Does anyone have any insights as to the full extent of liability for supplying dodgy mesh/steel that has been incorporated into a construction? I.e. how far could this issue actually go, would buildings have to be rebuilt and to what extent is STU really covered by insurance?