Research from Water Tower Research, Water Tower Research

Water Tower Research

Water Tower Research is a leading equity research firm that provides research on micro, small and mid cap companies.

Water Tower Research was founded by Wall Street veterans after witnessing a fundamental shift in the investment research industry with the result being a declining knowledge base among investors, a lack of awareness and a shrinking pool of fundamental research being conducted on companies across the small-cap and micro-cap spectrum. The same issues are now increasingly occurring in the mid-cap space. This sea change within the investment community is impacting not only the companies themselves but also current shareholders and potential investors. With significantly less active sell-side sponsorship by Wall Street, a substantial information gap has developed between companies and various constituents in the financial community. The net result is fewer channels for insight and information to flow between companies and investors.

Research from Water Tower Research

Equity Research Firm

Equity Bottom-Up

<ul><li>Steel and Tube's (STU) trading update highlighted that, as expected, operating conditions remain challenging in 1H24.</li><li>While volumes remain under pressure, solid pricing discipline and cost management has seen STU guide to 1H24 EBIT being broadly flat on 2H23.</li><li>Forward indicators are improving and we continue to expect some pick-up in 2H24, but there is a risk that this will be slower to translate into activity than expected. </li></ul>

Steel and Tube's (STU) trading update highlighted that, as expected, operating conditions remain challenging in 1H24.While volumes remain under pressure, solid pricing discipline and cost management has seen STU guide to 1H24 EBIT being broadly flat on 2H23.Forward indicators are improving and we continue to expect some pick-up in 2H24, but there is a risk that this will be slower to translate into activity than expected. 

Steel & Tube Holdings - The Cycle Grinds On