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02-06-2016, 09:15 PM
#101
Member
To confirm my post from yesterday (I did further investigation today):
The most common steel sourced from China is steel plate (used in structural steel buildings). Followed by that it is the structural steel (beams/columns etc) itself, however this is less common as the standard sizes in Aus/nz are different to other countries.
Reinforcing steel is rarely from overseas. The New Zealand standard that seismic grade reinforcing has to made made in accordance with is much more rigorous than for structural steel. Hence NZ suppliers have a better hold on the market.
Quality of Chinese steel is a huge issue. In some cases steel has been provided with forged production information that says it meets certain standards when it doesn't. Sometimes it's hard to get any information at all. It is especially a problem from seismic grade steel because not only does it need to be at least a certain strength, but it cannot be stronger than certain upper limits. This means they need to pick up their game if they want to truly displace New Zealand suppliers.
When it comes to the split between the above in terms of steel volume I can't help.
Happy to answer any questions... Disc: I provide the above information as an engineer rather than an investor in STU. I am monitoring happenings to see if value presents itself however.
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03-06-2016, 12:06 AM
#102
Originally Posted by muss1
To confirm my post from yesterday (I did further investigation today):
The most common steel sourced from China is steel plate (used in structural steel buildings). Followed by that it is the structural steel (beams/columns etc) itself, however this is less common as the standard sizes in Aus/nz are different to other countries.
Reinforcing steel is rarely from overseas. The New Zealand standard that seismic grade reinforcing has to made made in accordance with is much more rigorous than for structural steel. Hence NZ suppliers have a better hold on the market.
Quality of Chinese steel is a huge issue. In some cases steel has been provided with forged production information that says it meets certain standards when it doesn't. Sometimes it's hard to get any information at all. It is especially a problem from seismic grade steel because not only does it need to be at least a certain strength, but it cannot be stronger than certain upper limits. This means they need to pick up their game if they want to truly displace New Zealand suppliers.
When it comes to the split between the above in terms of steel volume I can't help.
Happy to answer any questions... Disc: I provide the above information as an engineer rather than an investor in STU. I am monitoring happenings to see if value presents itself however.
Thanks muss, very valuable info
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03-06-2016, 01:49 PM
#103
SP up 16c today to 200 - anyone know what could be driving that?
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03-06-2016, 01:51 PM
#104
Originally Posted by Mickey
SP up 16c today to 200 - anyone know what could be driving that?
Bargain hunters?
”When investors are euphoric, they are incapable of recognising euphoria itself “
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04-06-2016, 03:24 PM
#105
Member
I'm an old retired investor [my equal biggest investment is STU],I was quite concerned months ago when the share started to drop from near $3 down to the $2.50's,so I wrote an email to the CEO [basically asking if they were going the way of Pumpkin Patch & Katmando] & to my surprise he replied with a rather long email,explaining the problems they had & more or less telling me they were in a good place & advising all the positives in the company,which I thought was pretty good & quite enlightening [& his advise to me was they would not go the way of above mentioned companies].That being aside I can remember when their shares were trading around $1,so nothing is a certainty.But with interest rates where they are ,its a pretty sure thing that no matter what problems the company has it will still be earning enough to pay substantially more in dividends,as it is not just a steel provider & the building industry is going gang busters [even if you have your head in the sand,you must know that just from listening to the news].My reason for making a comment is many oldies will have shares in the company & I think sticking with them rather than taking a loss is the way to go [as tough as it seems].The share market should be strong for some time to come [unless Trump gets in & world war 3 occurs] as interest rates will remain very low for us old buggers for quite some time to come & you have all the kiwi saver outfits & the govt super scheme buying shares all the time & like in all circles STU will most probably rise again.
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04-06-2016, 10:31 PM
#106
They won't be buying Stu shares if they drop out of the NZX 50.
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04-06-2016, 11:16 PM
#107
Originally Posted by Lewylewylewy
They won't be buying Stu shares if they drop out of the NZX 50.
All interesting this inclusion or not in the NZX50 but at the end of the day it does not change how much EPS STU will be making so to me it does not matter one bit if they are in or not. Short term there may be a dip in price, (there may not be) and that will be it.
I think some investors put too much weight on index inclusion/exclusion and it really does not move the price that much in the long term.
Whether STU can put the latest "problems" behind them is another matter but if they have stated the truth with their latest announcement then sub $2 they may be worth picking up a few.
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05-06-2016, 02:53 AM
#108
Originally Posted by crighton100
I'm an old retired investor [my equal biggest investment is STU],I was quite concerned months ago when the share started to drop from near $3 down to the $2.50's,so I wrote an email to the CEO [basically asking if they were going the way of Pumpkin Patch & Katmando] & to my surprise he replied with a rather long email,explaining the problems they had & more or less telling me they were in a good place & advising all the positives in the company,which I thought was pretty good & quite enlightening [& his advise to me was they would not go the way of above mentioned companies].That being aside I can remember when their shares were trading around $1,so nothing is a certainty.But with interest rates where they are ,its a pretty sure thing that no matter what problems the company has it will still be earning enough to pay substantially more in dividends,as it is not just a steel provider & the building industry is going gang busters [even if you have your head in the sand,you must know that just from listening to the news].My reason for making a comment is many oldies will have shares in the company & I think sticking with them rather than taking a loss is the way to go [as tough as it seems].The share market should be strong for some time to come [unless Trump gets in & world war 3 occurs] as interest rates will remain very low for us old buggers for quite some time to come & you have all the kiwi saver outfits & the govt super scheme buying shares all the time & like in all circles STU will most probably rise again.
I really hope you are still holding those FPH shares C100
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05-06-2016, 03:05 PM
#109
Member
Originally Posted by kiora
I really hope you are still holding those FPH shares C100
Nope they went a while ago & paid for a 2 month holiday in Hawaii [thats the good thing about being old,you can do this stuff].Lets hope my 2nd biggest investment stays solid,good old NZX,always a good sound investment,as everytime people freek out & sell,the other greedies buy in,so as a profit is made on every buy & sell they really cant loose.Have a nice one..
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05-06-2016, 04:41 PM
#110
There's some truth in that. Whenever a share gets pumped, I always ask myself if it's something they can recover from. Hopefully STU haven't lost customers to long term contracts with competitors or given potential competitors the opportunity to get in. I don't know the answer to this, but I may take a punt later in the month
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