Stm Share Discussion Threads

[rcturner2] 11/9/2019 12:51

except you cant take away the cash they hold

[sphere25] 11/9/2019 12:42

I have been watching this since posting yesterday. I'm looking at the potential value here and then I'm watching the suspicious behaviour of FinnCap on the order book.

They put out positive broker notes highlighting the undervaluation with comments like this:

"Valuation.Shares trade on a P/E of 7x our 2019E numbers with an expected yield of 5.5%. Recurring revenues provide a sustainability to this dividend which we believe pays the patient investor until the reported investment measures begin to project the company into the next stage of positive development. Shares are down 24% over the past twoyears, but our peer-derived price target suggests significant upside could come through should the company begin to prove the model through a sustained period of over-achievingon results and reaping the benefits of the current transition period."

AND THEN THEY SIT ON THE OFFER HELPING A LARGE SELLER OUT BY UNDERCUTTING OTHER MARKET MAKERS SIGNIFICANTLY AT 42.6 WHEN OTHERS ARE SAT AT 45.

That is slimey behaviour. They're now sat on the offer at 43 with other market makers sat at 45 and higher. That's a huge difference on a stock like this. I know in the long run, if there is value it will out, but behaviour like this is completely contradictory to what they are saying and makes me suspicious.

What a bunch of slimey snakes!

[1newroad] 10/9/2019 21:54

Under valued is puting it mildly with STM. If you take away the cash the company holds, it leaves an enterprise value of just £8m. For a company that is already profit making and paying a dividend this is extremely cheap.
Also, worth noting is the investment the company has done recently will start to show fruit in the next 6 months plus.

[sailing john] 10/9/2019 14:19

"RCTurner210 Sep '19 - 13:04 - 742 of 742
The net cash is misleading as it is client money."

No it isn't! - but it has to be held for regulatory/solvency requirements - like all banks/financial institutions!

From 1H results
"In addition, cash and cash equivalents at 30 June 2019 were GBP18.1 million (30 June 2018: GBP18.8 million). As would be expected for a Group regulated in a number of jurisdictions a significant proportion of this balance forms part of the regulatory and solvency requirements. As at 30 June 2019 this was approximately GBP15.5 million."

[rcturner2] 10/9/2019 13:04

The net cash is misleading as it is client money.

[sphere25] 10/9/2019 12:48

Current Price 43p
Mcap: £25.5m

Expected Net cash at YE £19.8m
Operating cash flow £5m
Free cash flow of £3.8m


Dividend yield currently 5.1%
Forward yield 5.6%

The EV is peanuts. Stock is off nearly 40% from its highs at 70p.

Am I being thick or does that look dirt cheap on all metrics?

EDIT:
Looks like Pie Funds have partly been responsible for the move down. They held over 7% earlier this year and have been selling in bits, but got cleared out on 15th August.

Even with the net cash out of the equation, looks like it has been smashed up enough capitalisation wise to keep an eye on.

[cf456] 10/9/2019 12:28

"Lot happening with #STM which is a relatively small holding in my “newbies” portfolio. Underlying picture suggests the shares trade on a PER of 7 & offer a 5.5% div yield 👇🏻 Hoping for considerable share price appreciation in the next few years alongside a decent income stream."

[cf456] 10/9/2019 12:10

Just been tipped:

[123gmtrader] 30/8/2019 12:27

It's not a 3 year low at all.
15/07/18 - 31.6
17/04/17 - 29.1
11/07/16 - 27.5

It is though hovering on the bottom of the trend channel.

[ronwilkes123] 28/8/2019 12:52

3 year low - overhang appears still in place

[ronwilkes123] 20/8/2019 11:47

Still an overhang imho

[cheshire man] 20/8/2019 11:42

Recently bought in on that thinking LammyLover,,,,,,plus a very decent yield here too

[lammylover] 15/8/2019 23:56

Hopefully now that Pie Funds have off loaded their shares, the overhang will have cleared and we can move back up...

[cwa1] 15/8/2019 16:57

PIE going from 3.99% to zero...

[lammylover] 11/8/2019 09:38

II Buy

Declared on 8/8 - The Diverse Income Trust plc, Exeter picked up 3.29% of STM shares through BNY (OCS) Nominees Limited.

Rich

[cwa1] 06/8/2019 19:40

Wonder who that is? Miton? Too many for PIE, tho' might be them and another...

[jay083] 06/8/2019 18:32

Yep, lets hope it has cleared out the pie fund

[gary1966] 06/8/2019 17:34

Interesting trade of 8.39m shares this afternoon. Look forward to the holdings RNS.

[jay083] 02/7/2019 20:31

Looks like they want out completely and think they will continue to weight on the price until done

[cwa1] 02/7/2019 09:53

At least their piece of the pie is getting smaller...

[smithie6] 02/7/2019 09:46

PIE investments NZ have been reducing

but 3.9% left to go :-(

[sailing john] 02/7/2019 08:24

Selftrade also paid now

[sailing john] 02/7/2019 08:24

Selftrade also paid now

[cwa1] 02/7/2019 08:17

Quick update, my iDealing payment has turned up today without further prompting from me, so a bit slow but got there in the end. Thanks for the input above.