STU - Steel & Tube Holdings

[Shareguy]

Stu buys Perry's

Gosh I would have thought the ceo would have looked at how things worked out when they went down the track of buying non distribution businesses under previous management. Stu used to be the largest supplier of their own web grating, but over time like a lot of thier acquisitions key staff left and so did the customers.

Issuing new shares for Perry's dilutes existing holders. This time must be different I guess. New shares issues at $.84

https://api.nzx.com/public/announcement/450834/attachment/442409/450834-442409.pdf

[winner (n)]

Stu buys Perry's

Gosh I would have thought the ceo would have looked at how things worked out when they went down the track of buying non distribution businesses under previous management. Stu used to be the largest supplier of their own web grating, but over time like a lot of thier acquisitions key staff left and so did the customers.

Issuing new shares for Perry's dilutes existing holders. This time must be different I guess. New shares issues at $.84

https://www.nzx.com/announcements/450909

Dilutive ...yes the sellers now own 8.2% of STU and if it works out maybe 9% in a year or 2

Wonder how much STU needed to borrow to pay the ~$30m needed?

EPS accretive they say lol ...so no worries

Announcement here ...your link was Mainfreight
https://api.nzx.com/public/announcement/450834/attachment/442409/450834-442409.pdf

[winner (n)]

March building consents out from Stats NZ. Residential 12 months March down  3% on pcp ...non-residential down 7%

As Westpac says residential numbers at best remain 'flat' but should pick up later in year ...just like Malpass saying F25 going to be OK

Non-residential still going down ....future not so bright looking

Residential long term trend chart from Stats NZ quite interesting ...maybe this is where Mark gets his optimism from

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[BlackPeter]

Just had a look at FBU and just added the STU chart (the thick pink line ... don't ask me about the colour ;

You cannot view this attachment.

Sort of interesting - it looks like they (FBU and STU) are quite well correlated (well, not that surprising) with STU lagging roughly 6 months behind FBU. Ah yes, and FBU started rising - well, yes 6 months ago (ok - golden cross early March).

Might not be the worst time for aquisitions ...

[winner (n)]

A grumpy Mark in the press


The head of NZX-listed steel product maker and distributor Steel & Tube has expressed frustration about a number of major projects cancelled under the current government, saying if they had gone ahead they would have created much-needed momentum in the economy.

"We were hoping, with the National Coalition coming in, that 18 months ago, we would have started seeing some investment", Mark Malpass told The Post.

Sorry Mark ....you need to wait until 2027/2028 before things get any better

https://www.thepost.co.nz/business/360674116/steel-tube-boss-frustrated-over-cancelled-infrastructure-projects

[LoungeLizard]

A grumpy Mark in the press


The head of NZX-listed steel product maker and distributor Steel & Tube has expressed frustration about a number of major projects cancelled under the current government, saying if they had gone ahead they would have created much-needed momentum in the economy.

"We were hoping, with the National Coalition coming in, that 18 months ago, we would have started seeing some investment", Mark Malpass told The Post.

Sorry Mark ....you need to wait until 2027/2028 before things get any better

https://www.thepost.co.nz/business/360674116/steel-tube-boss-frustrated-over-cancelled-infrastructure-projects

Yep, it's a race to the bottom with this Coalition. If the Government doesn't have the confidence to invest in NZ's future, why should anyone else? (rhetorical).