Vulcan steel

[bull....]

powering to new recent high;s yesterday on asx

[bull....]

still on a tear , stu starting to get interest again now another 1m crossed yesterday

[Davexl]

Anyone know what happened to Vulcan last week ? Dropped from $9.30 to $8.50 over 5 days or so...

[winner69]

Anyone know what happened to Vulcan last week ? Dropped from $9.30 to $8.50 over 5 days or so...

Many building related stocks on ASX/NZX last week or so

Vulcan probably caught up in bad sector sentiment atmoment

[Davexl]

Maybe - thought they might be salivating over big infrastructural projects still, especially with Fast-track coming thru...

[winner69]

Maybe - thought they might be salivating over big infrastructural projects still, especially with Fast-track coming thru...

The rewards from big infrastructure overstated

Wherewithal, cash and capability will hold it all back and if zillions of work is done it'll be spread over decades.....and other work that might have been done in normal course of events will be deferred

At best steady work flows in next few years ...but no boom

That's how I see it anyway

[winner69]

BusinessDesk has an article about Fletcher steel division and it problems and the need to dispense with a lot of staff. Paywalled but here’s a couple of extracts -

. In fact, Vulcan Steel – whose chief executive, Rhys Jones, had once been an executive of the 95-year-old Easysteel division – said the market was the toughest it’s faced since 2008 and the Australasian steel and aluminium company shed 157 staff in the six months ended Dec 31, leaving it with 1,283 across its trans-Tasman operations at the start of the year.

And

The recent first-half result doesn’t bode well for the business in the current financial year, with the building sector still in the doldrums as residential intentions remain soggy and the outlook for commercial construction unclear given the tightening government purse strings.

Both Vulcan and Steel & Tube are optimistic the sector will perk up in the latter half of this year, and the prospect of building much-needed infrastructure should provide a boost, if it ever appears.

I bolded the bits containing the ‘toughest since 2008’ and ‘unclear’ and ‘if it ever appears’ bits as I reckon building/construction activity in NZ will still be at current levels in 2028 and then might start recovery.

[bull....]

Anyone know what happened to Vulcan last week ? Dropped from $9.30 to $8.50 over 5 days or so...

hit the top of the trading range its been in for a yr

[Davexl]

Thanks guys, Winner esp. !

[Daytr]

BusinessDesk has an article about Fletcher steel division and it problems and the need to dispense with a lot of staff. Paywalled but here’s a couple of extracts -

. In fact, Vulcan Steel – whose chief executive, Rhys Jones, had once been an executive of the 95-year-old Easysteel division – said the market was the toughest it’s faced since 2008 and the Australasian steel and aluminium company shed 157 staff in the six months ended Dec 31, leaving it with 1,283 across its trans-Tasman operations at the start of the year.

And

The recent first-half result doesn’t bode well for the business in the current financial year, with the building sector still in the doldrums as residential intentions remain soggy and the outlook for commercial construction unclear given the tightening government purse strings.

Both Vulcan and Steel & Tube are optimistic the sector will perk up in the latter half of this year, and the prospect of building much-needed infrastructure should provide a boost, if it ever appears.

I bolded the bits containing the ‘toughest since 2008’ and ‘unclear’ and ‘if it ever appears’ bits as I reckon building/construction activity in NZ will still be at current levels in 2028 and then might start recovery.

I started my working career at Fletchers as a Management Cadet based within Fletcher Steel.
I worked under Rhys both in Wellington when he was sales manager of the local branch & in Auckland when he became Auckland branch manager. He was ahead of his time within the industry. Very smart bloke.

I found out when I left that he had thought about sacking me when he moved to Auckland, as he thought I was a trouble maker & I probably was as I pushed everyone above me hard. I ended up being the top sales rep in the country. Not sure what to take from that, as his initial instinct was wrong, but he was also prepared to listen to advice & not act on it. He was pretty young then, as we all were.

I met with Fletchers again when I came back from overseas about 10 years ago and after a twenty minute meeting, quickly realised they had no clue. I doubt much has changed in that time.