Stm Share Discussion Threads

[teela brown] 04/8/2018 13:08

Last one! I've tried to find competitor companies in order to compare earnings. The only one I've found is Curtis Banks. Who are the others? Curtis Banks looks to be on a PE ratio around 30. It looks like lowly rated STM would be earnings enhancing and reduce their earnings multiple. Any views on the prospects of a takeover?

[teela brown] 04/8/2018 13:02

What's the prospects of a special dividend ? In December 2017 there was cash and cash equivalents of £18.4m. I reckon that's around 31p per share. They would need to retain some cash for regulatory purposes but in the absence of an earnings enhancing deal there would appear to be adequate room to pay a special dividend of 10p costing around £6m and still have more than £12m cash.

[teela brown] 04/8/2018 12:57

Tipped again in Investors Chronicle during the week by Simon Thompson. He's raised his target to 90p from 70p. Basically he's stripped the cash from the market capitalisation to value the underlying working part of the company. He's used £18.4m as the cash figure from the March finals. I expect the cash level to have increased by the September interims.

[rcturner2] 01/8/2018 19:24

Nice tick up today.

[smithie6] 06/5/2018 16:35

most/all of the big shareholders since a fund mngr bought in around 30p
are still invested....(noting that the MD sold about 10% of his stake about a year ago...nothing wrong with that (maybe money for a new house, new extension, new car, house for a child...(Not much point keeping all one's gains until one is 85 we pass away...)

MD still has millions invested in STM and hence is highly motivated to drive STM forward, as he has proven he is doing since he became the MD.

[smithie6] 06/5/2018 16:30

"Its a statement of fact. Remember the CEO's bestie sold millions at sub 30p. Don't shoot messenger. Take note."

well, selling millions at sub 30p
turned out to have been a big loss maker !!

(but lets note that these big fish are playing in more games than us PIs)

(if that chunk of cash lets you expand your own private business in to say USA..which then goes like a rocket...then maybe he made the right choice for him
...or maybe he used the cash to take part in a fund raising and keep a controlling interest in a business which employees him and wife and 3 kids...and over 10 years he gets back all of that money via salary and still holds the investment...

or maybe he had a big bill from a spread bet house due to a bet that went wrong

or maybe a big tax bill to pay or risk losing his house


we dont know)

[kingbarolo] 05/5/2018 03:45

Horndean has been on here trying to knock STM in the past - clearly a troll. Why would somebody with no interest in the company take time to talk it down? Fundamentals are rock solid, much more to come in the SP, nice dividend, finCapp tergetting 80p and Simon Thompson, IC, on board with 75p target. What’s not to like?

[actofwill] 04/5/2018 22:59

Your statement shows that even if someone is selling millions it might be detached from fundamentals...

I am taking note of factual noise.

[horndean eagle] 04/5/2018 19:06

Its a statement of fact. Remember the CEO's bestie sold millions at sub 30p. Don't shoot messenger. Take note.

[actofwill] 04/5/2018 16:27

"Entire holding" of £24k... he could be buying a convertible now the weather is turning...

[horndean eagle] 04/5/2018 12:35

Director sells entire holding today. Not exactly a vote of confidence.

[smithie6] 27/4/2018 09:10

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 16:12

Thanks smithie6, that makes sense

[smithie6] 25/4/2018 13:07

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 16:18

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 07:54

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 18:33

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 10:24

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

f

[fillipe] 08/4/2018 14:49

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

f

[kingbarolo] 30/3/2018 08:31

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 11:08

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 08:33

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 08:19

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 18:07

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?