STU - Steel & Tube Holdings

[King1212]

Well...$1.70 is a no...current sp is 1.48..what a bargain...might top up a bit today. Confirmed to resume dividend this financial year...so assuming STU is paying the same amount of dividend...the yield that I got is almost 12%...better than my rental property!

[Filthy]

Well...$1.70 is a no...current sp is 1.48..what a bargain...might top up a bit today. Confirmed to resume dividend this financial year...so assuming STU is paying the same amount of dividend...the yield that I got is almost 12%...better than my rental property!

surely yield will drop as there is more shares on issue

[Balance]

surely yield will drop as there is more shares on issue

Initially for sure.

But as can be seen with some recapitalised turnaround stories (HBL being prime example), could be much higher in future.

[percy]

surely yield will drop as there is more shares on issue

Craigs;forecast PE 11.63.Gross yield 5.67%.

Future ratios are dependant on whether or not STU performs.

[winner69]

Enough hints in there for either FBU to up the offer price or for another suitor to approach the Board with a better offer.

Meanwhile, company is making progress and resumption of dividends next year.

What is there not to like about STU?

Does make you think that the Board see’s the path to delivering ‘best value to shareholders’ is to sell the company

That alone is reason to hold in the meantime .......if that process drags out to next year time to move on. Would be a brave person to rely on STU delivering those touted bug profits

[King1212]

Craigs;forecast PE 11.63.Gross yield 5.67%.

Future ratios are dependant on whether or not STU performs.

well more Percy..got my small parcel at $1.16....

[percy]

well more Percy..got my small parcel at $1.16....

Astute buying.

[mfd]

With EBIT of 25 million and a 70% of NPAT payout ratio (policy is 60-80%), over the 166 million shares now on offer we can hope for about 7.5c dividends, assuming 28% tax rate and negligible interest. Rising to 10.5c if they achieve 35 million. Unlikely to get back to previous dividend levels any time soon.

I'll be crossing my fingers for a higher offer from somewhere.

[winner69]

With EBIT of 25 million and a 70% of NPAT payout ratio (policy is 60-80%), over the 166 million shares now on offer we can hope for about 7.5c dividends, assuming 28% tax rate and negligible interest. Rising to 10.5c if they achieve 35 million. Unlikely to get back to previous dividend levels any time soon.

I'll be crossing my fingers for a higher offer from somewhere.

Bold bit the key ......might achieve it by hook or by crook in F20 (delivering the promise) but I doubt whether they could sustain it at that level

[King1212]

Got the letter...saying that to hold the shares tight as the sp will double in the future