Stm Share Discussion Threads

[smithie6] 27/4/2018 08:10

cash

one would think they could hold the cash at the same place that lent STM the cash

& just pay interest if the nett result is a debt (& nett amount would be cash & no debt & hence no % interest to pay)

but that is so obvious I guess there must be reasons against it
; the regulatory money probably/definitely cant be held in that way since needs to be safeguarded/isolated.

The bod are very clued up & yrs of experience & have a solid % of the co. so Im sure they are controlling it as best as possible.
( & there are surely/phps % penalties for paying off the loan too quickly)

[simso] 25/4/2018 15:12

Thanks smithie6, that makes sense

[smithie6] 25/4/2018 12:07

I try

A good amount of cash has to be held for regulatory purposes

1 reqt. being I think 3 months of operating costs
& I guess some as extra security for assets held for clients

that is talked about in the accounts

--

& having a cash pile is also useful for
- looking at any acquisitions
- attracting new clients
('this company holds millions as cash, so your 50,000€ will be save & if you want your cash/assets back very quickly, they could obviously do it'

[simso] 24/4/2018 15:18

I have shares in STM and currently trying to better understand the business and reviewing whether to increase my holding. One question I would really appreciate help with, if anyone has a view. This relates back to the end of 2016 when we acquired London and Colonial. Part of the purchase price was funded by an increased RCF of £3.3m which costs 4% above LIBOR. Given the significant cash balances which the company holds, does anyone know why STM did not just use existing cash resource to pay, rather than slightly expensive debt?

Many thanks in advance

[kingbarolo] 18/4/2018 06:54

Still very cheap at these levels - FinnCap have 80p target on this. A little profit taking yesterday after a strong run but plenty more to come, I'm thinking!

[horndean eagle] 16/4/2018 17:33

Kentish and Banks are thick as thieves. Makes it more puzzling why Banks was so keen to get out of STM a couple of years ago at 30p

[fillipe] 16/4/2018 09:24

....and 62.74p paid, 1013hrs today.

f

[fillipe] 08/4/2018 13:49

A nicely positive article on STM, from ST in this weekend's IC ....now upgraded tp of 70p - 75p.

f

[kingbarolo] 30/3/2018 07:31

Expect Simon Thompson’s reveiw to be published during the course of Tuesday and expect this to be made hard copy the following Friday in IC. Very promising!

[kingbarolo] 28/3/2018 10:08

FinnCapp have upgraded their target price from 65p to 80p following results. I’m certain ST will value at least at that, probably even higher if previous patterns are anything to go by. Strong Growth, a nice dividend and a low beta value make this a great little company to be invested in!!

[kingbarolo] 28/3/2018 07:33

I’ve been following the news on this company and all appears to be amicably resolved, though it may take a little time and press coverage to get the price moving again - on these numbers it is ridiculously cheap. Simon Thompson (IC) is a big fan and no doubt he’ll be reporting over the next week. I expect the price to start moving within this timescale!

[greasynut] 28/3/2018 07:19

After normalising for tax, I get a cash adjusted PE of 4.5 @55p.

I like the fact that there's not much downside on future revenues.
Wondering if there is anything nasty coming from this Gibralter investigation.

Otherwise, should be a reliable long term hold. Possible rerating, but these quasi investment companies are always cheaply valued by the market.

[teela brown] 27/3/2018 17:07

Today's results strike me as being really good.

£18.4 m cash and 59.4m shares gives 31p cash per share.


A share price of 55p and basic EPS of 6.69p gives a PE ratio of 8.2.


Adjusting the share price to remove cash leaves 24p (55-31) and a cash adjusted PE of 3.6 (24 ÷ 6.69).

Simon Thompson in Investors Chronicle currently has a target price of 70p. I think he'll probably be adjusting that up.

Applying a PE ratio of 10 (because it's a nice round number) to the underlying earnings of 6.69p then adding back the cash would give a target of 90p (66.9+24).

Are my sums right?

[smithie6] 27/3/2018 12:42

not 1 post !!

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well done STM & especially the MD

great results & progress despite many obstacles.

well done.

[kingbarolo] 21/2/2018 18:26

So completion confirmed, adding another 0.4m to profits from next year! Great to be invested in this company: significant EPS growth year on year; underpinned by 70% recurring business; nice dividend (should increase this year!); low beta value; strong management team - what's not to like? Will be invested here for the forseeable!

[smithie6] 16/2/2018 13:00

so

the aquisition has been authorised

so .. 99% been completed

good news for future EPS

[kingbarolo] 08/2/2018 18:17

In full agreement, Smithie. A terrific performance by management this last year, stabilising the company whilst ensuring significant growth at the same time. I look forward to writing to the company after results next month to congratulate them on a great effort.

[smithie6] 05/2/2018 12:00

..well I think Alan Kentish had a lot of challenges to overcome in 2017 including the impact of rule changes on overseas pensions for some & the legal case

and has overcome them, increased the PBT by big amount & done an aquisition that is expected to boost profit & started moving the HQ from Gib. to UK. & Im sure some other things as well (more automated initial sign on for clients)

Wow, a busy year.
Full applause from me.

[kingbarolo] 27/1/2018 16:21

Simon Thompson, Investors Chronicle releasing a post covering STM on Monday at 12 noon.

[smithie6] 24/1/2018 22:46

....sounds good

[kingbarolo] 24/1/2018 16:06

Yes, interesting how price has increased despite continuous selling but I've seen this happen with this stock before. Quite possibly an order being filled. Prospects looking very good following update - should get some press attention in next few days and with full results in March the rally should continue from here.

[smithie6] 24/1/2018 15:16

18 sells in a row since 10:23
with (says advfn) not 1 reported buy

interesting

[smithie6] 24/1/2018 12:56

a line of lots of sells today at 49p...with no mixed in buys...

while the share price is up today

hopefully indicates there is a big buy order being filled; time will tell...
----

RNS today gives nice increase in PBT

nice cash producing business with big amount of recurring income

Any views on the move of HQ to the UK ?
.surprises me
clearly they have decided not to move it to Malta to have the HQ stay within the EU, but Malta business stays within Europe so they can still easily handle any business inside EC without being outside EC like UK soon will be.

I guess a foot in both camps gives the max. flexibilty

[smithie6] 17/1/2018 12:06

phew

that news is a relief, the share price had gone down a lot in recent weeks