Stm Share Discussion Threads

[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 12:19

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 14:51

what are the numbers ?

[jimtech] 25/9/2021 15:42

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

[smithie6] 25/9/2021 11:24

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 17:00

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 15:53

Interesting. Peter Gyllenhammar ups his stake

[jimtech] 16/9/2021 15:16

That's why I am holding. Low risk and reliable. Undervalued but not going to change the world. Not convinced about acquisition plans as they are proposing buying small companies which won't make a huge difference. More upside if it was taken over.

[baner] 15/9/2021 11:32

Everything is relative, Jim. I believe this company could well earn £4m after tax in 2-3 years time, which at a PE of say 15 would generate a share price of 100p. Maybe this is uninspiring however i believe this represent a sound risk/reward, not the least as the downside seems to be limited and there is a good dividend yield.

[jimtech] 15/9/2021 11:02

Nothing new in results. Quite uninspiring.

[baner] 14/9/2021 20:41

Total agreement Arthur! They will be taken over unless the shares start to move north soon. Very large proportion of recurring income could be plugged into larger infrastructure and generate good profits. Further: if they could invest their net cash in for example their own Office building, profits would increase by £1m+ - at very little if any risk. They should acquire a vacated site on the cheap, move in themselves and Woops the value will increase as well as the results going forward. As simple as that.

[arthur_lame_stocks] 14/9/2021 13:01

No one got any comments on the results? I thought they were adequate rather than actually good but i'll continue to hold and rake in the very healthy yield.

I would like to see 50p before I sell these.

[arthur_lame_stocks] 02/9/2021 11:01

I reckon these are worth 50p easily.

[smithie6] 13/8/2021 12:23

they did go a bit crazy 2-4 years ago with taking on additional bosses/managers, but I guess that that was in response to the regulatory problems so there wasn't much choice

now unwinding that a little by the look of it

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UK pension section seems to be doing ok now...& better than it was

but yes, not yet firing on all 8 cylinders....while surely the share price would be much higher if they were

it does look cheap

[lundun42] 13/8/2021 12:06

So a pretty mediocre update from STM yesterday. It seems the experiment with a board level COO hasn't lasted long but at least an acknowledgement that they need to focus on driving up levels of new business.

[camerongd53] 01/7/2021 14:51

STM was included in the Investors Chronicle'cheap small cap growth Plays' portfolio which has shown regular outperformance over many years.
Despite this the share price dropped yesterday. Share price unloved until there is good news

[smithie6] 29/6/2021 20:45

"the payment of a final dividend of 0.85p per share"

is due on 30th June

:-)

[smithie6] 29/5/2021 17:12

ah
if a buyer of STM (if that were to happen) were to use STMs software then that would give them an extra annual cost saving, instead of paying to licence external software

& the value of the development of the s.w. would probably be recouped in the sale price.