The way I look at this is that STS raised the number of shares on issue by 30% whilst my holding has risen by 42% through the SPP. Admittedly I have parted with around $10k to get this result but feel comfortable with the deal.
As construction activity picks up companies like STS will need to be reasonably liquid to take full advantage - some deals require cash bonds (eg) - and WIP levels rise and need funding.
My only concern is STS's tendency to make acquisitions that don't always work (when do they ever?) - not that I am complaining about the Meridian acquisition other than it was done at the top of the market with a substantial cash element - should have been a paper transaction imo.
With this successful equity injection I see a bright future and am looking fwd to the agm(!)
STS Price at posting:
92.5¢ Sentiment: Buy Disclosure: Held
