Yeah Right!!!!
Not returning my call ended up saving me a lot of money.!!
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Be interesting watching to see whether new CEO can deliver.?
A very competitive market.Bunnings,Mitre 10,Plumbling World,Mico Wakefield,Oakleys,Carters,Placemakers etc are experts a screwing manufacturers/suppliers. No profits =no divies.
A growing company in a growing sector has more safety in paying increasing dividends.
I do not see MVN as either a growing business nor is it in a growing sector.
Do not agree with that summary percy.
Construction/rennovation are cyclical and we are at the start of a potentially decade long structural boom for NZ building industry. Definitely a growing sector.
They also have some interesting growth avenues in China with the hotel retro fitting business.
In regards to the retailers, Bunnings and co are where you buy cheap no brand taps. These guys have focused on the premium branded end of the market and have very good margins.
They have good shelf space at places like Reece/Chesters where the trade market tend to buy.
Michael.I agree with you there will be a lot of building going on in NZ,it I just that I do not think MVN will get their share.Too much competition.
I have felt for a number of years that they are a " poor" company.As you pointed out troubles in UK.I think they also had troubles in Aussie.They appear to attract troubles.!!!lol.
I am also mindfull of their failure to deliver on their targets.
They have paid out more in dividends than they have earnt over the last two years.
Low debt has/is the saving grace.
Fair enough.
Its a shame there are not any really high quality ways to play the impending local building boom. I am a believer it will be a bigger driver of nz growth
Some would argue FBU and I am much happier with them under the current CEO than under Jonathan Ling but they too have some pretty big structural headwinds...
Welcome peoples ideas on playing the building theme.
The only two I currently have are MVN/CAV due to being kind of strong in their niche and having had high returns on capital (15-25%) until very recently
I am worried about CAV from a retailer-shafting-them perspective but do think there is a place for quality branded tapware, so MVN is pretty much my only NZ building play at the moment..
I agree with Forest's CDI as a company that is/will do well selling a lot of sections.
I sold out of FBU as there were always problems,ie Laminex in Spain,always sometime.Also thought Bunnings must be making Placemaker's life difficult.
I brought STU as they are well focussed,well run company in that sector.I brought at $2.53 and have had a good divie already.CAV,also faces challenges!!!
Craig's have updated their research with a buy recommendation.12month target price $1.65.
Thanks Percy, thats good to know.