Forum Archive Index - August 2000

[Chris <cd@ak.planet.gen.nz>]

Steel & Tube has risen 25% in the last month.  BHP's controlling interest 
has long been watched for outright sale or total control.  Check this 
from today's SMH.   

*The company later said it would spin off its $1.9 billion long products
business and close or sell other non-core assets*

Full read at:   
http://www.smh.com.au/news/0008/17/business/business11.html

Earlier in the year BHP earmarked STU for consolidation or sale.  They 
backed off and did nothing.  It is most unlikely that they will err this 
time.  Keep in mind the impending sale or shakeout of FLB.  It would not 
surprise me to see a bit of jockeying and a single player controlling the 
FLB steel div and STU, despite earlier Commerce Commission findings. 

I mention this stock because I believe there is more upside to be had.  I 
have received a personal account from the Christchurch branch, 'sales are 
booming, we're run off our feet'.  The big recovery in Canterbury is 
feeding through quickly to STU.  Rural and commercial rather then 
residential at this stage but it makes sense to be in that order.

Come Monday 21st they go ex a 7c div(full imp), a total of 13c for the 
year so watch for opportunities today and Fri.  Current broker valuations 
for STU are over $2 with ABN AMRO at $2.48.

You be the judge.

Ragards 
Chris






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