must be quite gut churning for a lot of retail shareholders and the situation of waiting till Monday to hear any news.
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must be quite gut churning for a lot of retail shareholders and the situation of waiting till Monday to hear any news.
and I note that FBU is trading at a p e of 57+ when considering its history and its business sector it should be at 18-20 p e which should reflect in its s p of circa $2.25 - $2.75 !!
Fletcher unlikely to fail
https://www.stuff.co.nz/business/101...more-bi-losses
No surprises. Not sure there's any management change that can fix a losing construction project (maybe a good lawyer). But sounds like when they identify a loss they cannot control the rate of loss which is pretty useless. Lost count of how many (allegedly) underperforming projects they have on the books.
I'd be interested in how commercial bay is doing. Although KPMG reported it is performing in line with FBs expectations.......
That included some "one off" provisioning last year...which looks to be a recurring thing. I tried to value them on the basis of their assertion it was a one off and based on an across the cycle PE of 10 for a cyclical company, 7 at the peak of the construction cycle like we are now I arrived at $5 many months ago. Obviously now its clear that losses within the B & I division will be ongoing for quite some years so I would tend to see fair value at well under $5 now. I have no idea how the professional analysts have arrived at some of their fancy theoretical valuations some as high as over $9 but the fact is they've been proven wrong and my own assessment of value made me stay out which has proved correct. I think it takes 5+ years to clean up this mess and see FBU as a systemic underperformer going forward.
Watched TV1 tonight and the glee with which Milford talked down FBU - the stock is an absolute BUY on MOnday should it drop $2.00 to say, $5.75.
Means Milford is out and like with Diligent, is getting ready to buy back in imo.