STU - Steel & Tube Holdings

[entrep]

Calling it - 20c or lower raise.

[Crackity]

Craigs say not back in profit til 2028 at earliest.

And

Given the challenging macro backdrop and the fact STU remains loss-making with elevated levels of debt, we continue to see risk skewed to the downside. On this basis, we maintain our U/W recommendation.

FB say

There is little room for error; we believe STU is currently close to the maximum end-of-month debt that the current NZ$80m total facilities allow for given intra-month working capital requirements. Also, STU's net debt is now c.80% of its market capitalisation, in line with levels prior to its 2018 equity raise

Our U/W recommendation  - lol - grow a pair Craig's and call it a sell


I reckon stick a fork in it and call it done

[winner (n)]

Thought of Mark and his team watching the Knicks coming from 29 down to win their NBA game the other day

Like best teams fight against that drift. UThey stay aligned. They create clarity. They keep showing people how they're doing and where they're headed. Not because certainty guarantees success, but because confusion almost always guarantees failure.

By the final buzzer, the Knicks did more than win a basketball game. They reminded me what can happen when Mark refuses to let the shareprice determine the story.

Keep at it Mark, you can lead STU to greatness again.

[Shareguy]

Article in Business Desk today about possible capital raise. It's going to be close they say unless they make more profit.

Market does not like uncertainty, hence the share price rusting away.

[winner (n)]

Reindler resigning as Director

He's a steel man ...been been on Board since 2017 but says 'new thinking' is now appropriate

Could be code for there's no hope things will ever get better

At least they didn't use the word 'transformation'

[Shareguy]

Reindler resigning as Director

He's a steel man ...been been on Board since 2017 but says 'new thinking' is now appropriate

Could be code for there's no hope things will ever get better

At least they didn't use the word 'transformation'

Agree I note no disclosures from any insiders buying. Says it all in my opinion. The board should all resign given the performance.

[Basil]

Curious if this is mostly the same board that turned down FBU's $1.90 takeover offer years ago on the basis it was well below intrinsic value ?

[winner (n)]

STU share price down 69% last 5 years

Vulcan Steel only down 17% in same period

Says some

[winner (n)]

Curious if this is mostly the same board that turned down FBU's $1.90 takeover offer years ago on the basis it was well below intrinsic value ?

Chair Susan a champion in turning down takeover offers

[Crackity]

Curious if this is mostly the same board that turned down FBU's $1.90 takeover offer years ago on the basis it was well below intrinsic value ?

I think they decided it wouldn't pass ComCom approval so they didn't even try.

Of course Vulcan now a much bigger company now and still as smart

And Fletchers the same ( a solid second )

And then there is STU....


This is a snippet of BD article

There was little room for error, the analysts said. "We believe [Steel & Tube] is currently close to the maximum end-of-month debt that the current $80m total facilities allow for, given intra-month working capital requirements. Also, [its] net debt is now [about] 80% of its market capitalisation, in line with levels prior to its 2018 equity raise." On June 8, the firm announced it had extended its banking facilities with ANZ. It had now agreed amended covenants with the bank, based on earnings milestones. The company said the new bank deal provided the headroom and operational flexibility to navigate varying conditions across the business cycle and support ongoing working capital requirements. "The directors are satisfied that the company's capital structure remains sound and will continue to review its capital requirements in line with the evolving needs of the business." Issues aplenty Steel & Tube's 2025 $43.3m acquisition of Perry Metal Protection regeared the balance sheet "at what they thought was a reasonable turning point", Koreman-Smit said. However, things had deteriorated since. Steel & Tube has a raft of issues affecting its outlook: the war in the Middle East, new US tariffs on steel, copper and aluminium and the NZ general election.  "There's been competitive pressure on margins and also soft activity, which has been hampering volumes," he said. Forsyth Barr expected 2026 second-half earnings before interest and tax (ebit) loss of $6m. In the six months to Dec 31, the firm posted a $12.4m loss despite a decent result from its Perry galvanising acquisition.


That tells me annual accounts gonna be grade A ugly