Stm Share Discussion Threads

[lundun42] 19/11/2021 11:46

Slipping out mediocre news on a Friday! I've not been following STM for a while so must update my reading & research.

[clocktower] 19/11/2021 11:08

£2 million forecast next year is hardly a step change pdosullivan but it is a step in 6the right direction.

[pdosullivan] 19/11/2021 10:48

Disappointing update this morning but important not to lose sense of the context - these are relatively small numbers. STM has built a platform that has given it enhanced operating leverage. If excess capital can be deployed on acquisitions then we should see a step change in profitability from here.

[smithie6] 19/11/2021 08:35

"Christine is building her new business development team...."

too many managers perhaps, for the profits/growth being produced ??

...with so many managers is there any/much work left for the MD to do now that most of the software development is done & mostly installed ?

(the new software does open up new business opportunities ..as shown by negiotation of a sizeable new contract...And was a good step to take.....but we expected it to help the profit margin ....)

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the weak PBT & share price might attract a buyer for the co. , producing a higher price ??

[smithie6] 19/11/2021 08:32

or is it Spanish ?

je je

or Greek ?

[elsa7878] 19/11/2021 08:28

Think Alan has a bit of the Italian in him. Always tomorrow!

[boystown] 19/11/2021 08:22

It's not THAT bad? It's just that it's becoming a habit. It's still very undervalued though.

[smithie6] 14/11/2021 21:31

Russman
"prices are too high." for acquisitions

You have any data to support that claim ?

I think STM are looking at acquisitions that have few other possible buyers phps, because most cos. with all the licenses are much bigger & are not interested in the acquisitions that STM might consider, since they are too small to interest big companies.

The previous legal case might also affect valuations & whether STM would be interested. ( if execution only with no advice is understood by the courts to mean that the financial house "is" responsable for any bad decisions made by the client then it probably reduces the value of many acquisitions !!, since there is a risk of liability/cost)

OK, completely nuts but that is what the recent court decision said I think. STM subsidiary is appealling against the decision/sentence.

[arthur_lame_stocks] 14/11/2021 18:24

Russman the cash is needed for regulatory purposes.

[russman] 14/11/2021 18:11

STM have missed the boat; prices are too high.
Either use the net cash wisely or buyback / divi.

[smithie6] 11/11/2021 22:48

they want to make acquisition(s) they say
but of course they will try to get the best acquisition they can ...for price & benefits it brings

if they don't find anything suitable then they won't.

(who knows what prices are doing for acquisitions, if they are falling (due to some cos. being smaller than critical mass needed (new regs. added in the last few years) then it would make sense to wait )

often acquisitions are from bosses/owners that want to retire or cash in, & the possible number of those each year must be quite small I guess.

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cash available for any acquisition increases over time I think, as delayed cash arrives from sales
and internally generated cash adds up over time

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ignoring the possibility of an acquisition the co. needs to improve its profit margin, which has fallen in recent years
& I think they are trying to increase the margin but everything takes time

[smithie6] 10/11/2021 18:30

they sold some parts of the co. with no growth prospects

logical imo

[russman] 10/11/2021 17:43

It is a confusing message.
STM have a growth strategy but appear to be iiquidating to cash.

[smithie6] 09/11/2021 20:22

The finance page of this website says that the ROCE is 5.33%.

(but the real is higher imo)

ie. that you are wrong to write "zilch"

while yes, 5.3% is not 10% nor 20%.

(the regulations require nett cash/assets to be held,
unavoidable I think
the amount required is based, I believe, on the value of the assets of clients & the costs to operate the STM business)

[russman] 09/11/2021 17:43

15m net cash; earning zilch.

[arthur_lame_stocks] 01/11/2021 11:40

I want 50p for mine.

[value hound] 01/11/2021 11:31

A few more for PG I see. He can have mine for 40p :-)

[smithie6] 30/9/2021 13:19

definitely a lot less downside risk with STM than many other shares, such as 7Digital which has dived today, down 40% this morning. A £10k stake there would have lost £4k in its on-screen value !

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& 7DIG was 6p for most of 2017

less than 10% of that now !!
so, £10k invested in 7DIG in 2017 would now be worth just ~850 quid !!

[smithie6] 26/9/2021 15:51

what are the numbers ?

[jimtech] 25/9/2021 16:42

Berkeley Burke acquired 2020. Profits down 2020 and H1 2021.

[smithie6] 25/9/2021 12:24

Jimtech

"Not convinced about acquisition plans as they are proposing buying small companies which won't make a huge difference. "

one acquisition was expected to add 0.6 million to PBT if my memory is correct, a notable % of STMs PBT. So, the possible benefits of acquisitions should not be written off imo. While yes, the PBT also depends a lot on the perf. of the rest of the co.

[baner] 20/9/2021 18:00

He has probably read Jim´S comment above - which i believe is really accurate. Low risk and reliable. The dividend is of course tempting in this 0-interest world as well.

[cwa1] 20/9/2021 16:53

Interesting. Peter Gyllenhammar ups his stake