Anyone who thinks all the skeletons are out of the closet is kidding themselves !
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Anyone who thinks all the skeletons are out of the closet is kidding themselves !
Agreed. Look at teh industry. CPD Construction has over 51 delay building Christchurch Acute Serves and Leighs COnstruction had to delay Hospital Outpatients. The industry is absolutely riddled with problms. If I held FBU I'd be wanting a construction project by construction project market update - just like SML did yesterday.
The industry is absolutely riddled with problems. Talking to a well connected client yesterday he told me there's a number of smaller construction firms right on the edge of receivership. Biggest issue is getting staff who don't **** things up and people that actually do the job with reasonable quality control.
Its no easy feat building hundreds of units on time and on budget, (especially in the really tough Auckland market) like SUM companies do, OCA another notable company that's building on time and on budget.
Makes you wonder if retirement companies can succeed at this incredibly tough game how come FBU gets it so badly wrong ? Aren't they the ones supposed to be the experts with many decades of experience at this gig ? It simply beggars belief doesn't it !
I am still surprised the share price has held in relatively well through all of this. Only down 2% today.
If I owned some of this flea-bitten old dog, I would have got rid of it long ago - better fish to fry.
From a purely uninformed position I would think that "residential and development "and "high rise/major developments"are two very different beasts. Perhaps Fletcher's joint venturing with major international infrastructure firms had something to do with their past success?
You could be right as I think there's very little doubt now that they simply don't have the expertise within their own ranks to complete major projects in an economically feasible way. The complete cessation of bidding for future high rise / major developments is a frank admission of exactly that !
How does $420m become $880m, soon possibly to become $1b+ ? The mind boggles. The new CEO really has no option but to try and cauterize the wound before it takes the company down.
But wait there's more :)
http://www.sharechat.co.nz/article/d...conditionshtml
For some strange reason I have this clear image of a mangy old dog returning to its own vomit lol