Interesting article ex NZHerald.....http://www.nzherald.co.nz/business/n...ectid=12007538
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Interesting article ex NZHerald.....http://www.nzherald.co.nz/business/n...ectid=12007538
NZ was safe there for a while. All corporate bullies found a new home in Fletchers and EQC for quite a while. If the engineering shortcuts overseen by Fletchers in Christchurch is a reflection of their overall corporate culture I would stay well clear of any Fletcher building - and that includes the Convention Center.
Dropped to $6.21 today, this seems to be the lowest in about 5 years or so. Any thoughts on where this tumble will stop?
A selection of my thoughts expressed last month Jimmy.
This week we've had Nikko Fund management head of equities come out in the behind the paywall article on NBR saying their forward PE even at this low level is 16.5 and he thinks that's expensive and is probably wrong as they won't make their earnings forecast. He went on to say asset sales were required or a capital raise and noted that the U.S. private placement noteholders have yet to give their approval to a debt waiver and there can be no certainty they will.
Another analyst in the same article suggested that FBU in its current form is too big and diversified to be managed properly.
I think you'd be a VERY "brave" investor to continue to hold this stock even at the current price with the company facing so many challenges going ahead.
I think this could go quite significantly lower from here and would rate the chances of a material capital loss in the short term as VERY VERY high.
Does this not announce a waiver was achieved with only amendments to be agreed?
https://www.nzx.com/announcements/314981
Auckland, 1 March 2018: Fletcher Building today announced that it has received a waiver of the breach of covenants under its US Private Placement (USPP) funding arrangements,
Or is this not the same thing?
However, clearly we await the confirmation of agreement on the amendments in the next few days or otherwise further waivers will be necessary.
Fletcher Building will continue to target the end of March 2018 to complete the amendment process. If the Company does not agree on the amendments by 31 March, it will need to seek an extension of the waiver from the bank syndicate and the USPP noteholders.
Perhaps this is why the share price is quite soft right now until this uncertainty is resolved.
Chris Lee suggesting there are rumours AIR's Chris Luxon being touted as the next Chairman !!
Thanks Beagle, good insight. I will have to do a bit more digging. Intuitively I had always though they were just such a big company that they would always come back. BTW tried to send you a PM the other day, not sure if it got throu, thanks for kind words re that other matter (re SUM).
$6 bucks today , lowest S P in 5 years , what a bunch of muckin fuppets , are we heading for $5 bucks, no wonder the shorts are in place for a big clean up !!