Secure Trust Bank Share Discussion Threads

[xamf] 09/1/2023 16:51

Back in here again at 740 having last sold at over 1200. Appeared on my stockopedia filter list and couldn’t believe the share price I know retail/housing stocks have been in the doldrums but the share price sell off looks a complete over-reaction, particularly with rising base rates - their fundamentals are epic at these prices. Have I missed something here?

[jswjsw] 31/12/2022 12:39

By comparison with the junior (and senior!) banking sectors STB has been way undervalued for some time: return on equity is the best there is (except BGEO) and price/assets is still about half the sector average. There is negative cashflow (-£4.82) but this is improving - and why is it any concern at all when net cash/share is £12.64 ???
With a 23 yield around 6.5% this is close to the top of the buy-list for 2023.
j

[apple53] 30/12/2022 16:51

Thanks Brucie

I sold a third of my modest metro position, but wasn't quick enough to beat the jump in STB's price today, so will keep a little bit of dry powder.

[brucie5] 30/12/2022 09:36

Sorry, can't advise, Apple. But I do hold here for both income and growth.

[apple53] 30/12/2022 07:56

Despite the spike wondering whether to recycle my modest Metro position into this here. Obviously Metro even cheaper vs book but masses less visibility on earnings etc.
And a massive recent bounce.

Metro thread is a bit painful but wondering what you sober-er individuals might think.

[brucie5] 29/12/2022 14:46

Slight spike up. Next sma resistance at 800, 900.

[catabrit] 23/12/2022 15:27

Unless these guys do a PCF, this looks like a decent buy down here. Circa 0.3x TBV. Nice dividend whilst you wait. With rising rates, I could see this trading at a premium to BV in the years to come albeit that wouldn't necessarily be my base case.

Market is assuming a degradation in NAV but the r/r feels skewed towards the upside.

Re wider debate about whether to wait or to buy, I have personally made a bit of distinction between those stocks that pay out dividends and those that do not. If I am getting a 7-10% dividend yield that's well covered by earnings and very likely to grow in the medium term, I am personally OK to be buying at 52-week or 5-yr lows as I can recycle the dividends back into lower stock prices. But both approaches - waiting and buying - are equally valid in a bear market. In fact, net short could be the new net long but starting valuation matters a lot and across a number of names, the starting valuation looks very very attractive.

[p1nkfish] 23/12/2022 13:21

Bottoms and tops only knowable in hindsight. Bruce's approach is absolutely reasonable.

Volume of trades has been ebbing lower vs 3 month average, given where it sits in price and yield an increase in volume is likely to be to the buy side imho. It will encounter resistance levels on price recovery but buyers now may be more income orientated and less likely to sell so long as there is nothing with a more attractive yield available at less risk.

Dyor, looks like an attractive proposition imho.

[brucie5] 23/12/2022 12:28

Linton, you may of course be proved right - but given that you never can know the future with certainty, one approach might be to use the extraordinary level of current dividend payouts available to average down a select universe of value stocks, in order to compound your future income..? That has been my approach for last 12 months, such that while my capital value has indeed declined over the year by almost 10%, my dividend stream has increased by rather more. I hold STB, and the current level at somewhat over £6 looks and feels very much like a base to me - fwiw. But we shall of course see in due course!

[linton5] 19/12/2022 15:40

The way a lot of British stocks are going Brucie so many at 7 year lows I would say lower possibly I know it’s ridiculous as so many undervalued stocks but that’s what’s happening

[brucie5] 19/12/2022 15:16

LINTON519 Dec '22 - 10:06 - 420 of 421
0 0 0
On my watchlist getting very tempting but will be patient good long term hold anyway
------------------------------------------------------------------------
Linton, out of interest, what are you waiting for?

[daler1966] 19/12/2022 10:18

Good yield ,

[linton5] 19/12/2022 10:06

On my watchlist getting very tempting but will be patient good long term hold anyway

[p1nkfish] 15/12/2022 15:42

Lucky we can buy around this price imho.
Shame to miss the opportunity if people are a little patient.

[brucie5] 15/12/2022 15:15

Chart is very compressed, suggesting a break one way or other. I hold.

[retsius] 14/12/2022 19:18

Very well presented and contained a lot of info.

Must be a buy at this depressed level.
IMHO dyor

[brucie5] 14/12/2022 15:17

Good find - thanks Tomps2.
Impressive presentation.

[tomps2] 14/12/2022 14:37

Introducing Secure Trust Bank (STB) - December 2022

Secure Trust Bank CEO, David McCreadie gives an overview of this specialist lending business, which is also a regulated bank. David joined STB about three years ago, initially as a Non-Exec director, he took over as CEO two years ago and gives an update on what they've been doing, the strategy going forward and the impact of the current economic climate.

Watch the video here:

Or listen to the podcast here:

[digger18] 30/11/2022 16:04

Does anyone have an email address for the MD? I can’t seem to find one on the website or any RNS?

[p1nkfish] 29/11/2022 20:34

None too good that he doesn't already.

[retsius] 29/11/2022 18:52

Digger18

Send an email to David McCreadie he’d want to know.

[retsius] 29/11/2022 18:50

Digger18
Thanks for posting an update.

I am very shocked you have not had any callback from Customer Services.
There must be something wrong here, they were posting 90% customer satisfaction not long ago.

[brucie5] 29/11/2022 17:17

Fair enough. Thanks for response. I'm hoping that quite aside from the specific merits of the business (or demerits) the sector is benefiting from higher interest rates. And STB pays a decent dividend while meeting three Stock screens. Meanwhile 600 looks like the bottom on the five-year view so I'm willing to be the patient holder.

[digger18] 29/11/2022 16:22

Because their rates are very good and I am shareholder as well.

[brucie5] 29/11/2022 14:50

digger18, sorry to hear that. I wonder what's going on. Out of interest - and as a shareholder here - why did you choose STB? I would have through it's well under the radar of most savers?