Stm Share Discussion Threads

[arthur_lame_stocks] 07/12/2021 10:44

At least he had the good grace to wait until after the profit warning.

[profdoc] 07/12/2021 10:06

CEO sells £100,000 shares in STM following last month's profit warning - interesting

[russman] 06/12/2021 17:56

Merger with Tavistock would at least be bigger.
Strip out overheads. Works on paper.

[lundun42] 06/12/2021 16:59

Just seen the RNS announcement that the CEO has sold 300,000 shares to fulfill personal commitments. Nothing unusual in that of course, except that the Company PR announcement says he sold shares but their attached RNS notification says under "Nature of the transaction" it was a "Purchase of Ordinary Shares" :)ha!
So which was it?

[smithie6] 26/11/2021 15:26

...if we get a period of stock mkt weakness

then I guess that the purchase price for any acquisition will reduce, beneficial for STM.

[smithie6] 23/11/2021 14:22

"The credit facility is for £5.5m (the "Facility"), is to be used purely for acquisitions, and is expected to be drawn down in line with acquisition milestones by 22 April 2022 at the latest."

so, I assume that the facility will not be shown in liabilities while it is not drawn down

although the interest cost, on undrawn loan, over 5 years will be shown as a liability I am sure.
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personally I think the cost being paid for a loan that hasn't been drawn down is too high & imo STM made a mistake to agree to it. £96k/year. I guess the co. was sure at that moment that it would quickly draw down the loan, so the % rate for undrawn did not matter.

[russman] 22/11/2021 18:34

Too small; sell up to a bigger player who can consolidate & strip their overheads out.

[pdosullivan] 21/11/2021 19:04

Presumably north of the £5.5m acquisition facility from NWG - https://www.stmgroupplc.com/media/archive/2020/061120

[smithie6] 21/11/2021 14:05

How much free cash do we think the co. has available for acquisitions ??

[pdosullivan] 20/11/2021 08:32

By step change I mean that is what one could see happening when the acquisitions arrive and add scale to the platform.

[russman] 20/11/2021 08:23

the business continues to look for acquisition opportunities that would give more scale to its UK businesses.
A fitting epitaph - London & Colonial is too small.

[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