Suppose BlueScope are still happy holding on to their 15% share?
They having a say about divie v share buyback?
Whatever probably puts a damper on any takeover
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Suppose BlueScope are still happy holding on to their 15% share?
They having a say about divie v share buyback?
Whatever probably puts a damper on any takeover
In the Herald today (paywalled) different views on steel stock on hand and in the pipeline. Some say about to run out.
"But Mark Malpass, chief executive of NZX listed Steel & Tube, said: "There's no question there's been tight supply out of Asia for some time but that's beginning to open up. Steel reinforcing mesh is not about to run short. It's tight but it won't run out.'' "Reinforcing bar supplies were also limited, Malpass said, adding that people needed to order well ahead of time."
https://www.nzherald.co.nz/business/...CNGIVQYLF7G7M/
Consistent with what I was told last week that customers dealing with STU are very relieved that they are able to source steel products to continue & complete their projects. Not so those who were dealing with the opportunistic fly-by-nighters steel suppliers who now cannot supply.
Yes CEO states trading was 29 percent ahead before lockdown and that lockdowns delay spend. I suggest STU are going to have a great year. They have taken a lot of cost out of the business with a very clean balance sheet with no goodwill and cash in the bank. I agree we don’t want a takeover now while the share price is so low, but think it’s just a matter of time. NZ Steel a subsidiary of Bluescope has 15.8 percent of STU. Bluescope own a distribution business in Australia and rely on distributors in NZ. Would also be a good fit with Fletchers with substantial synergies. Vulcan listing in November. With all that aside I’m expecting a ripper half year result.
What do you guys think about the CEO being on the Z Energy board? Also one of the STU directors is also on the Z board. Must admit only found out today.
https://www.marketscreener.com/quote...420/revisions/
STU is a stock which fell out of favor and out of most brokers' coverage. As can be seen from the revisions in the last year, the 3 analysts left covering the stock have not had a clue what revenues and earnings STU was likely to make.
And a stock which is not well covered and badly covered stocks usually will end up surprising - which STU has been doing for the last year.
As it regains favour with earnings upgrades & rising sp, more analysts will cover the stock and that's when the real upward price momentum will emerge imo.
Looking forward to an earnings upgrade by Dec 2021.
Update in the Herald, also paywalled. Covers some of the same ground as earlier article mentioned above but with more detail about what is in short supply (reinforcing bar, mesh, plates, rebar, galvanised products) and why (imports from China and local covid impacts on manufacturing and raw material suppliers).
Headline 'Supply crunch: Steel delivery times jump to four months'. Up from 6 weeks earlier this year.
http://www.nzherald.co.nz/business/s...4YOO5UDN2KCTY/