Secure Trust Bank Share Discussion Threads

[apple53] 11/1/2024 18:13

Some intriguing trading again today. It seemed to be 705 bid and 714-16 offered around lunch before 2 trades at 732 (summing to £9k) followed shortly after by £1k at 692p! The small auction was at 708 but otherwise the final trading seemed to be 715-20, so definitely a new (recent) high.

[jeff h] 11/1/2024 15:07

Marks Electrical another listed STB customer.

Retail not doing well but then many do not look in danger of going bust either, besides if they were doing really well they may not need loans from STB!

[jeff h] 07/1/2024 18:33

STB making loans to some well known names:-



Ted Baker, and the listed Anexo other clients.

If they can avoid defaults the full year trading update on the 25th should read well.

[flyfisher] 04/1/2024 14:27

It has about £400m debt under the government TFSME scheme.

Tfsme is repayable from 2024, so they will have to sort out an alternative source of funding or shrink the loan book. Have they covered this in a presentation?

No position.

[brucie5] 04/1/2024 14:07

Probably not.
;)

[xamf] 04/1/2024 13:48

I've traded shares for many years (perhaps too many) and it still amazes me why someone would sell a stock like STB at this point when the fundamentals are so strong.

In November they said : 'trading in third quarter of 2023 was in line with expectations, and the net loan book "continued to grow". Net lending increased 14% to GBP3.21 billion from GBP2.81 billion for the same quarter in 2022. New business lending is up 15% year-on-year to GBP578.7 million from GBP502.1 million, but down 7.3% from the second quarter of 2023 from GBP624.0 million "as spending by consumers softened." Deposits are up 16% to GBP2.72 billion from GBP2.35 million'.

This is on a forward PE of 3.1, P/B less than 0.4 and pays over 8% div (with over 3x cover), consistently increasing working capital and no debt. Most of the trades today appear to have been sells. I was happy trading this when it was over twice the price and now it's an absolute no brainer! Am I missing some insider news here?

[jeff h] 29/12/2023 18:05

Next update will be the Full Year one for 2023 on 25th January 2024.

[apple53] 29/12/2023 12:10

Annoyingly I was right about the 690. Holding around there, though with some weird variations still.
Next news likely to be pre-close update. Was 19th Jan this year, with full balance sheet update. I'm confident they will mention an EGM for buybacks due to lower volume growth! [not]

[p1nkfish] 28/12/2023 00:30

apple53, I'm holding for a similar outcome and hope to continue to be paid to wait. A lovely little company, under appreciated.

[apple53] 27/12/2023 21:11

Thanks Pink. "as though" didn't mean I really thought they were; just one explanation among many. And I wasn't talking about after hours, just the very small trades at (suddenly) 20p higher in the last hour or so. STB is so illiquid anything can happen. A blockage is a reasonable story, but, ceteris paribus, I think our starting point tomorrow is closer to 690 than 710.

Does it matter either way? Not really. I did sell a smidgeon in the mid-600s, as I had massively loaded up at 600 and needed to deleverage, but would dearly love to be able to hold on to most of my holding to at least £10 (sometime in 2024? - look at OSB's recovery to see how 50% upside is not much to ask, with both stocks unfairly sold off to a similar degree).

[p1nkfish] 27/12/2023 20:22

I dont see manipulation in the after hours trades, looks more like some blockage was removed with the larger earlier trades?

[apple53] 27/12/2023 16:57

A bit strange. The price jumped in the last hour on much smaller trades, as though someone was trying to manipulate. A bit early for year end. Then £7k at 700p. Then £14k at 690p, so truth probably closer to 690p than the £3.4k auction at 710p.
But still happy with the direction; just a tenner to go.....

[xamf] 27/12/2023 16:29

I am loving this movement today!

[wallywoo] 12/12/2023 12:09

Share price has had its consolidation phase at these levels and is now ready to move higher. Onwards and upwards!!

[p1nkfish] 29/11/2023 15:25

Ideally want to see a weekly close over 659.5, good to see some perkiness.

[xamf] 29/11/2023 15:12

Yes hopefully patience rewarded. Finally above 654. I'm surprised that this hasn't moved upwards faster tbh.

[basem1] 29/11/2023 13:53

Could be about to break upwards Hopefully patience rewarded At least we have been getting paid to wait with a nigh on 7% yield

[kenmitch] 13/11/2023 20:14

Agree Brucie about SCSW performance having deteriorated markedly and Stocko Small Company analysis is way superior imo.

BUT GOOD looks as though it could well be a rare SCSW winner. Like you I didn’t buy immediately after their tip as the share was marked up too much, but GOOD has been quite volatile and I was able to buy at 203p on a dip from 236p and averaged up at 225p on a dip from 260p and also had a final average up today at 284p.

There’s a chance that after such a fast further rise the share could again correct to give a lower buy price opportunity. Don’t want to bully you or anyone else in to buying GOOD but IF Investec figures are to be believed it’s still cheap!

No more from me on GOOD here as it’s off topic and could look like ramping it. I’m just as keen on STB despite my general reluctance to buy any bank, but it too just looks far too cheap.

We’re awash with BARG buy opportunities. e.g good news from way oversold 10% dividend payer PHNX today. And what about all those Investment Trust REITS on huge discounts and paying dividends up to 10% a year.

[brucie5] 13/11/2023 15:02

Ken, well done on GOOD. Excellent metrics on Stocko, too.
Unfortunately for me, the time to have bought this was probably last month's copy of SCSW, which has otherwise been fairdly dismal of late.

I hope you do well out of it.

[kenmitch] 13/11/2023 11:54

Hi Brucie5

I hope you followed up the suggestion to have a good look at Good Energy? News today has sent the share price well up again so far today. If Good is half as good as YU and TEP it will be a big winner.

STB also looking good. Very optimistic that can continue.

[jaknife] 11/11/2023 17:42

Brucie5,

For the long term I am definitely a value/GARP investor. For the short-term I am happy to be long or short depending on what's going to make me money.

JakNife

[brucie5] 11/11/2023 17:36

Thanks Jak. Nice to see you in the positive context of shares you like, rather than the opposite, which is where I've mainly encountered your posts. On the former and beyond the banking universe, do work with any particular screens? I'd also be interested to know how you describe your investment style in terms of value/growth?

[jaknife] 11/11/2023 15:35

Brucie5,

STB was picked using a mechanical screen, it appeared as no. 1 on that list. I'd happily agree that OSB and a number of others (eg NWG, ARBB, BARC) all offer incredible value at this point in time.

JakNife

[brucie5] 11/11/2023 11:17

Thanks. But to be clear, did you take a look at OSB as well?
Re. Stocko: OSB passes both the PYAD Income (like STB) but also the Philip Fisher Growth Screen.

Here are their basic metrics. OSB has a mcap about x10 the size of STB: (good thing/bad thing? Safer thing?) And a higher div. Div data has 9.56% btw.

OSB:

PE Ratio (f)
3.6
PEG Ratio (f)
0.2
EPS Growth (f)
26.9%
Dividend Yield (f)
10.46%

STB:

PE Ratio (f)
3.0
PEG Ratio (f)
0.2
EPS Growth (f)
23.5%
Dividend Yield (f)
8.37%

I hold both.

[jaknife] 11/11/2023 00:09

Brucie5,

Yes.

I pitched this as a buy on the stage at Mello Chiswick on 23/24 April this year. The numbers were, and still are, compelling. It's the top ranking UK banking stock on Stockopedia as per their value metric.

JakNife