Feltex (FTX) - All over for shareholders

[Snow Leopard]

The SP is not doing too well is it?
Despite projected for year at SP = 150:
Gross Yield = 10.9%
P/E = 8.67 (or if the miss their target by 10% P/E = 9.61)

Still you can not argue with the market.

Did you know that most of their loans are in A$? I certainly did not.

[winner69]

And PT did you note that borrowings went up $20M from June to Dec ... because of negative operating cash flows and $9M in capex

That despite such a strong EBITDA result

[Snow Leopard]

Yes.
Do you need an explanation of why and whether it is good or bad or can you read the financials yourself?

[winner69]

Even with that 6 cent dividend to come still going down ... and even hit 144 today

The talk of a lower dollar hasn't helped so the market must be concerned about the trading conditions that FTX need to endure if there is a hard landing in the economy

[Snow Leopard]

High dollar bad, low dollar bad.
Perhaps the market just does not like Feltex?
Or maybe it just does not understand Feltex?
Pity really

[Cooper]

The biggest question for me is can the divi be maintained? If yes, then this stock looks like a good yield play. Anybody who can enlighten me with their opinion?

[Gryffyn]

nice to have you back posting on the main board coop. no opinion on div maintenance at present

[Cooper]

Thanks Gryff... have been looking at FTX for a while and was going to buy last week before everything on my computer screen started turning red. None held at present, but watching with a lot of interest.

[Snow Leopard]

Ouch!

quote:
FTX
01/04/2005
FORECAST

REL: 0906 HRS Feltex Carpets Limited

FORECAST: FTX: EARNINGS GUIDANCE FOR THE YEAR ENDING 30 JUNE 2005

Friday, 1 April 2005

FELTEX CARPETS LIMITED

EARNINGS GUIDANCE FOR THE YEAR ENDING 30 JUNE 2005

Based on the latest market assessment and current management information
prior to the finalisation of the third quarter's earnings for the quarter
ended 31 March 2005, and a significantly revised market outlook for the
remainder of the financial year, the Directors of Feltex advise that the
sales for the full year are now projected to be between $295 million and $305
million. This is below the previous guidance provided in the interim report
of between $310 million and $315 million.

Net profit after tax is now projected to be between $15 million and $16
million for the year ending 30 June 2005. This is between $8 million and $9
million less than the previous projection.

Key reasons for the revised projections are as follows:
? Feltex has found the market environment in Australia and New Zealand more
difficult than expected in the first quarter of the calendar year.
? Although our commercial retailers and contractors remain confident for the
current financial year, and next year, they have experienced a delay in
projects due to the current shortage of laying contractors.
? Our key residential retailers have recently advised us of the continued
low store traffic in the first quarter of the calendar year, which has
reduced their confidence for the remainder of the financial year.
? We have experienced increased price competition in the market primarily
due to synthetic imports being higher than projected (due to the strength of
the A$ versus the US$) and the general slow down in the Australian
residential market. This price competition has impacted the Company's
ability to fully pass on additional first quarter synthetic raw material cost
increases. Synthetic based raw material costs are expected to continue to
move up in the near term and our ability to recoup these cost increases will
depend on competitive pressures.
? The reduction in local Australian manufacturers' share of the market due
to rising synthetic imports and the slowing Australian residential market, is
frustrating the Company's ability to reach its projected market share
increases.
? The ongoing strength of the New Zealand dollar, which remains above our
projections, continues to have an adverse effect on the Company's
performance.

Dividend Reinvestment Plan

With regard to the interim dividend, which is being paid on 8 April 2005, the
Company will be advising the appointed Broker to the Dividend Reinvestment
Plan not to purchase the required Additional Shares for Participating
Shareholders until the market has absorbed the above information.

ENDS
End CA:00113490 For:FTX Type:FORECAST Time:2005-04-01:09:06:59

[Dazza]

will have to see how the markets respond to this..