FBU Chart.

[bull....]

you can join a conference call if you want to hear the future is all rosy

https://www.nzx.com/companies/FBU/announcements/304262

[BlackPeter]

One picture says more than 1000 words:

Attachment 9000

The blue line is the performance of FBU over the last 5 years (Mark's legacy). The brown line is the NZX50. Ah yes - and we had a building boom in NZ over the last 5 years with lots of earthquake related donations to FBU thrown in ...

How can anybody run a building company in boom times that bad? Thanks Mark, great job!

Discl: just being sarcastic - I don't hold

[JoeGrogan]

It's crazy cause just walking around Auckland CBD you can see how many developments Fletcher is involved in. You would think it would translate to the bottom line, is it a case, inter alia, of stretching themselves too far?

[BlackPeter]

It's crazy cause just walking around Auckland CBD you can see how many developments Fletcher is involved in. You would think it would translate to the bottom line, is it a case, inter alia, of stretching themselves too far?

Just plain bad governance and management - have a read of Chris Lees comments in March: http://www.chrislee.co.nz/newsletter...17&month=March

He might have to add something to them around now ... )

[James108]

Could be good buying opportunities coming up, I don't hold.

At the end of the day Fletcher is the premier construction company in NZ and will be around in 20 years time. Their brand remains undamaged. I would be very suprised if they didnt make it to at least tender design phase for CRL. They will continue to be involved in the biggest jobs in NZ going forward.

Definitely something I would buy at the right price.

[percy]

The history of Fletchers is one of taking on big gambles and losing.
Acquisition after acquisition have been disasters.

[BlackPeter]

Could be good buying opportunities coming up, I don't hold.

At the end of the day Fletcher is the premier construction company in NZ and will be around in 20 years time. Their brand remains undamaged. I would be very suprised if they didnt make it to at least tender design phase for CRL. They will continue to be involved in the biggest jobs in NZ going forward.

Definitely something I would buy at the right price.

2 big 2 fail? Be careful ... while I agree that there might be lots of hidden value in FBU - it is up to the board and management of the day to either unveil or unravel this value. FBU was sitting for the last decades on its laurels (or hands or both ....) and enjoying their nearly monopoly position in NZ but still creating only very average returns despite charging top prices. If some of the younger fitter and bigger building companies world wide discover that NZ is a market with a lazy, tired and inefficient incumbent creaming all the jobs - how hard would it be for them to move into NZ providing high quality work and building materials at world market prices (roughly half of what it costs here)?

I think this company is still salvageable ... but I don't think that their board is so far demonstrating the right attitude, otherwise they would have done the honorable thing a long time ago. Jobs and perks for the boyz ...

[Balance]

Yuk......This sort of news has the makings for a shareprice to test its primary support ($7.50) at opening...Thats a bear for ya.. full of bad news, unpredictable temperment claws and all (yesterdays close $8.09)

Market cap yesterday of $5.16 billion plus net debt of $2.04b as at 31 Dec 2016 = enterprise value of $7.2b.

On EBIT of $525m, stock is trading on a EBIT multiple of 13.7 times!

Some more distance to fall, I suspect.

[Hoop]

Could be good buying opportunities coming up, I don't hold.

At the end of the day Fletcher is the premier construction company in NZ and will be around in 20 years time. Their brand remains undamaged. I would be very suprised if they didnt make it to at least tender design phase for CRL. They will continue to be involved in the biggest jobs in NZ going forward.

Definitely something I would buy at the right price.

"...At the end of the day Fletcher is the premier construction company in NZ and will be around in 20 years time...." Don't bet your house on it...History tells a story that the odds aren't that great....Have a look at the NZ Investment 1998 Year book if you have it.....Reading through it you will find half of the companies are gone...
Fletcher Challenge was gone in in the 1998 year book replaced by Fletcher Challenge Building, Fletcher Challenge Energy, Fletcher, Challenge Forests and Fletcher Challenge Paper...20 years on only Fletcher Building remains listed from that 1996 Fletcher Challenge separation...

I would have a guess and predict that FBU could separate in the near future...deja vu ???

[Balance]

"...At the end of the day Fletcher is the premier construction company in NZ and will be around in 20 years time...." Don't bet your house on it...History tells a story that the odds aren't that great....Have a look at the NZ Investment 1998 Year book if you have it.....Reading through it you will find half of the companies are gone...
Fletcher Challenge was gone in in the 1998 year book replaced by Fletcher Challenge Building, Fletcher Challenge Energy, Fletcher, Challenge Forests and Fletcher Challenge Paper...20 years on only Fletcher Building remains listed from that 1996 Fletcher Challenge separation...

I would have a guess and predict that FBU could separate in the near future...deja vu ???

Break-up not necessarily a bad thing - the bad parts are disproportionately dragging down the good parts.

Given a choice, we will all only invest in the good parts.