STA, my turnaround story.

STA, a turnaround idea. (As first posted here July 29 2024).

STA (19.80) anticipates positive earnings momentum carry thru 2H this year supported by the recovery rubber demand and prices from countries ex-China, higher avg selling price yoy and delivery of rubber under new EUDR standard to EU clients. STA, which traded as high as 50 during the Covit-19 health crisis (2021) is a turnaround-idea here, which in the past paid very high dividends that I expect will resume. STA continued to pay dividends -evenwhile earnings dropped off on cyclical factors. STA finances remain solid with the debt-to-equity ratio at 0.7% at the end of Q1/2024. Asia contributed the largest portion of sales revenue at 38.5%, followed by Europe at 20.9% and North America at 18.2%. South America contributed 14.7% while the Middle East and Africa accounted for 3.5% and 3.4% of sales revenue, respectively. Australia and Oceania contributed 0.9% of sales revenue. (As of end of 1Q 2024).

More prudent investors may want to await their 2Q earnings, but I think the worst is over and so is a turnaround high yield idea with little exposure to Thai economy. TSR20 Rubber price the past 16 years. A long bottom has formed.

Paul Renaud

Beyond Thaistocks.com