STU - Steel & Tube Holdings

[percy]

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?

I think it will be up to the courts to determine the extent of liability,and whether buildings have to be rebuilt or not.Compensation etc.
The insurance I would think will also be determined in the courts.
Whatever ever happens, I expect it will come at a considerable cost to STU.
Lawyers,QCs and courts do not come cheaply.

[BlackPeter]

I think it will be up to the courts to determine the extent of liability,and whether buildings have to be rebuilt or not.Compensation etc.
The insurance I would think will also be determined in the courts.
Whatever ever happens, I expect it will come at a considerable cost to STU.
Lawyers,QCs and courts do not come cheaply.

Agree - and adding to that - justice does not come fast in our country. Expect many years (potentially decades) for which this
Damocles sword will hang over STU.

[blackcap]

All hunky dory, nothing to worry about, transformation well underway and dividends back next year:

http://nzx-prod-s7fsd7f98s.s3-websit...957/285625.pdf

(how much to believe though)

[King1212]

All hunky dory, nothing to worry about, transformation well underway and dividends back next year:

http://nzx-prod-s7fsd7f98s.s3-websit...957/285625.pdf

(how much to believe though)

can not believe any companies at the share market....that why we call share market..business is up n down every year

[boysy]

Had plenty of support today up 4c wonder how this will trade heading into the bookbuild ....

[King1212]

It said the quarter trading is looking positive...so the management must be on track. A write off is one off..so with 1/2 billion revenue...for sure the SP worth more than the current?

[BlackPeter]

It said the quarter trading is looking positive...so the management must be on track. A write off is one off..so with 1/2 billion revenue...for sure the SP worth more than the current?

Since when would revenue determine the share price? Last time I checked was STU not a hyped up startup software company, but a building supplier with a lousy quality system.

If you look into earnings (instead of revenue), than yes, this is typically one of the factors impacting on share price, but not the only one. And to be honest - a forward PE of 133 (2018 to 2020 based on analyst consensus) might suit amazon, but is this the right PE for a ZERO growth company like STU?

And what about risks? Isn't there some pending litigation with potentially fatal outcome given that they sold lots of substandard steel?

If we assume that all the customers whom they sold substandard steel are happy and forego compensation (unlikely) and that they manage to get back to something like 20 cents EPS next year without further slippage (highly optimistic) - how much would they be worth? OK - lets say $2 as absolute best case. The question every investor needs to ask themselves is - how large is the risk that things run less than optimal (they always do ....).

I think the market gives a quite clear answer to this question;

[boysy]

Having another spurt towards the theoretic ex rights price of $1.28 today. The rights in the money by 19c will be interesting to see how this trades over the next few days.

[Robomo]

So the question is - what effect on SP will the bookbuild have, which closes for retail investors tomorrow moring? Will those that bought their entitlement at $1.05 get burned, or make a nice instant profit?

[King1212]

This will help STU...

https://www.nzherald.co.nz/business/...ectid=12116219