Secure Trust Bank Share Discussion Threads

[rimau1] 05/8/2021 07:27

Results couldn’t be better, HvH is obviously clouded by impairments, the key point for me is the return to growth of the loan book, the strong continued trading and H2 outlook. As others have said the rerate has not really begun and if this dips at all i will be topping up. Appreciating all banks are understandably lowly rated IMO £1800 is FV given economic uncertainty in 2022. I also expect sector consolidation and am encouraged by the desire at STB to balance dividend growth with investing to grow. This is a class act in the banking sector.

[this_is_me] 05/8/2021 07:14

"Secure Trust Bank PLC ("STB") is pleased to announce a record trading performance for the six months to 30 June 2021"

Everything is going in the right direction.

[brucie5] 04/8/2021 17:15

RC, thanks. I picked up some of these.
Do you hold HFEL?

[johnhemming] 04/8/2021 07:37

The market does appear to like the situation:

[rcturner2] 04/8/2021 07:21

Off topic, Bruce another share that scores highly for me is LGEN which I hold. They have come out with pretty impressive interim results today which must also read across to Aviva (which I also hold).

[rimau1] 04/8/2021 07:14

Agreed as long as we get a strong outlook statement on Thursday. Results have been well flagged in the TU so the only price trigger would be a bullish outlook and/or continued strong trading.

[brucie5] 03/8/2021 17:09

Great chart action. Looks like return to 1600 nailed on?

[jeff h] 02/8/2021 13:41

Interims this Thursday

[rcturner2] 02/8/2021 12:34

Share price going in the right direction. Good read across from HSBC I guess?

[bountyfull] 19/7/2021 09:31

Have a holding here now also just applied for their 120 day notice account at 0.75%

[value_spotting] 14/7/2021 14:26

The resultant calculation gives an equity value range of between £262m and £463m, or between £15.70 and £24.80 per share, significantly higher than the current price level of £10.30 per share. Moreover, my sensitivities show that the applied Ke would need to rise to 16.2% for the equity value of STB to be equal to the current share price.

hxxps://eddielloydcom.wordpress.com/2021/07/11/bargain-hunting-secure-trust-bank-plc-at-5-6x-fy22-p-e/

[bountyfull] 13/7/2021 18:31

Thank you for your help RCT - much appreciated

[brucie5] 13/7/2021 16:46

RCTurner213 Jul '21 - 09:52 - 252 of 257
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Brucie, if you are interested one of my top scoring stocks (held for a while now) is Polar Capital (POLR).
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Hold this already in an income fund - waited a bit too long to acquire it for the Bruciefolio... Maybe a I need to revisit.

See you over there?

[rcturner2] 13/7/2021 16:40

I use operating margin as defined by stockopedia (operating profit / revenue). Stocko only shows P/S but it is relatively easy on their website to define your own ratios and also you can download results into excel and then fiddle about to your hearts content.

[bountyfull] 13/7/2021 13:09

Thanks RCT - when you say margin % is that the companies profit margin? Is this the EV/S to margin ratio a stocko ratio? Many thanks.

[johnhemming] 13/7/2021 12:21

Time to bank on Secure Trust, says Shore Capital
Shares in Secure Trust Bank (STB) have fallen back with the sector, providing an ‘excellentR17; entry point into the challenger bank, says Shore Capital.

Analyst Gary Greenwood retained his ‘buy’ recommendation on the stock after a positive trading update that he expects to drive upgrades.

‘Following a strong run towards the back end of last year and into the new year, Secure Trust Bank’s shares have come back recently with the sector,’ he said.

‘This, along with the positive update has created an excellent entry point. With a last published fair value of £17.00 with scope for modest upgrades, Secure Trust Bank’s shares currently offer the most upside – 63% – across our banks and specialist lender coverage universe.’

The shares closed up 6.5%, or 68p, at £11.08 on Monday.

[rcturner2] 13/7/2021 11:31

Ok so it is a bit esotoric but here goes.

A lot of people measure P/S which means price to sales, ie a ratio between the market cap and the revenue. I prefer EV/S which is enterprise value to sales which adjusts the market cap for net cash or net debt. This is because over many years I have favoured companies that have net cash rather than debts.

I then divide the companies margin % by the EV/S number to see what it shows. This is essentially saying that I am happy to pay more for a company with a bigger margin and less for one with a small margin. The higher the number the better. Of course you have to be careful as some companies with large cash balances have that tied up as regulatory capital so isnt really shareholder cash.

Some companies that appear to be good investments on all their numbers get filtered out on this measure so I find it useful.

[bountyfull] 13/7/2021 10:36

RCT can you please tell me what EV/S to margin means/measures and how it is calculated. Thank you.

[rcturner2] 13/7/2021 09:52

Brucie, if you are interested one of my top scoring stocks (held for a while now) is Polar Capital (POLR).

[jeff h] 13/7/2021 09:30

Snippet from Citywire:-

Time to bank on Secure Trust, says Shore Capital

Shares in Secure Trust Bank (STB) have fallen back with the sector, providing an ‘excellent’ entry point into the challenger bank, says Shore Capital.

Analyst Gary Greenwood retained his ‘buy’ recommendation on the stock after a positive trading update that he expects to drive upgrades.

‘Following a strong run towards the back end of last year and into the new year, Secure Trust Bank’s shares have come back recently with the sector,’ he said.

‘This, along with the positive update has created an excellent entry point. With a last published fair value of £17.00 with scope for modest upgrades, Secure Trust Bank’s shares currently offer the most upside – 63% – across our banks and specialist lender coverage universe.’

[brucie5] 12/7/2021 19:14

Excellent note. Open up the all year chart and you can see that 2000 might not be that much of a miracle to achieve. It peaked at 2015/16 at 3000. Since then, a clear pattern of declining peaks and troughs, to this latest one. Could well be that this is the turning point, with 1000 as new support. Macro seems to favour banks atm, and we're certainly being paid to wait.

[value_spotting] 12/7/2021 12:31

News today reaffirms my view on STB!

Check out my article: hxxps://eddielloydcom.wordpress.com/2021/07/11/bargain-hunting-secure-trust-bank-plc-at-5-6x-fy22-p-e/

[jeff h] 12/7/2021 12:00

Should be trading at around £15 a share at the moment I reckon.

Profits expected to be ahead of the top end of expectations, so above £36.8m. I would expect £40m or more for 2021 with EPS of 165p or more in addition to the bonus of a big dividend.

[rcturner2] 12/7/2021 11:12

PE, yield, margin, ratio of EV/S to margin, stockopedia rating/screens

[brucie5] 12/7/2021 11:11

RCTurner212 Jul '21 - 10:17 - 245 of 245
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I have a checklist of 5 things and STB gives a healthy tick on all counts.
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Intriguing. Care to share?