Directors optimistic but it looks like they need serious volume growth as well as decent price increases to stay in business.
http://www.sharechat.co.nz/article/e...-covenantshtml
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Directors optimistic but it looks like they need serious volume growth as well as decent price increases to stay in business.
http://www.sharechat.co.nz/article/e...-covenantshtml
Hope isn’t really a strategy ...but the volume fairy might save the day
Is this the CAV boardroom these days?
The five year trend in sales as shown in the presentation does not in any way support the directors assertions and contentions. As a numbers man I cannot reconcile the directors optimism regarding the future with the steady serious down-trend in numbers that's clearly obvious. Cavalier carpet is already extremely expensive relative to alternatives, especially synthetic carpet.
The choice of floor coverings with new modest cost housing is primarily based on price. The present economic conditions are extremely unfavourable towards high end discretionary purchases and the trend towards synthetics and hard floor coverings is well and truly intact and continuing.
As your cartoon alludes too...I really think they are on a wing and a prayer of hope. I wouldn't buy at any price.
We have just replaced some of our flooring and gone with a hard floor covering in our modest older home - some was replacing existing non carpet flooring.
Personally I would go for a wool carpet where using carpet as opposed to a mixed blend or solely synthetic if economically viable and within budget, but as you sat Mr Beagle not favourable for most people at present.
I would think that most of the 100,000 kiwi build homes (whenever they get built, if ever) won't be using cavalier carpet.
Agreed. Its simply too expensive for most families so its becomes a high end discretionary choice for the comfortably well off only. That's the nub of the issue.
High end European vehicles are not selling very well either and there's a lot of debate about whether they're more durable or really any better than mainstream vehicles too. If the directors think they can swim against the prevailing economic tide then I hope they and shareholders have some life jackets handy. :eek2: Enough said.
Interesting acc change in shareholding notice. They were at 5.4% and are now 2.2%. You need to promptly disclose promptly on a 1% change or going under 5%. This indicates they found a buyer or buyers for a stake of about 3%. Some unknown person or institution has confidence in CAV.
An article of general interest
https://www.nzherald.co.nz/north-isl...ectid=12273575
Another half year …. another half year of declining sales ...and again a loss reported
But OK as a NEW STRATEGY is on the way
Nice phrase used 'growth deceleration' but sounds painful ...must it some time
http://nzx-prod-s7fsd7f98s.s3-websit...776/317192.pdf
Really sad to see this once iconic and successful NZ company which added so much value to NZ primary produce blunders it’s way towards oblivion.
Talked to a farmer 2 days ago and he has switched from sheep & wool to deer and cropping - deer because there is huge demand from Asia for the velvet, and cropping because the dairy and meat farmers cannot get enough.
Wool? Total waste of time as far as he is concerned.