FBU - Fletcher Building

[Jaa]

Anyone else worried that Fletcher's factories in Auckland are being allowed to reopen?

This is how COVID has spread overseas during supposedly strict lockdowns. Large, politically connected factories producing non-essential products lobby politicians and civil servants to re-open eroding social trust ("why can they open and we can't?"), cause clusters of new cases and delay or make impossible elimination. After long enough, everything is essential to someone.

Government lets factories return to unplug building supplies bottleneck

[Greekwatchdog]

Why? They are doing it based on protocols just like rest of NZ did safety under level 3. And lets not forget this is out because of Govt f**k up in MIQ and they still haven't found root cause.

[Rawz]

Anyone else worried that Fletcher's factories in Auckland are being allowed to reopen?

This is how COVID has spread overseas during supposedly strict lockdowns. Large, politically connected factories producing non-essential products lobby politicians and civil servants to re-open eroding social trust ("why can they open and we can't?"), cause clusters of new cases and delay or make impossible elimination. After long enough, everything is essential to someone.

Government lets factories return to unplug building supplies bottleneck

I think it is well documented that we have a housing crisis with families sleeping in cars etc. Get the factories producing building products cranking!

[bung5]

To industry!

[stoploss]

I think it is well documented that we have a housing crisis with families sleeping in cars etc. Get the factories producing building products cranking!

We do have a supply issue imo. However the families in cars is not such a thing anymore.

https://www.rnz.co.nz/national/progr...ving-in-motels

[winner69]

Do Fletcher’s think the share price isn’t low enough yet to recommence buy back

[Greekwatchdog]

I wonder if the 5 week lockdown has delayed given the cost of paying wages during the lockdown. Maybe they might reduce it too $200m? Are they allowed to do that?

[Entrep]

This has come down quite a way from recent highs. Thoughts? My price alert went off and looking to buy.

[Greekwatchdog]

Consents at Records..

Despite a nationwide lockdown residential consents set a new monthly record in August, finally topping October 1973.
Unsurprisingly, given the recent run of strong consents, 12-month rolling approvals (+24% yoy) and floor area consented
(+22% yoy) also hit new all time highs. Non-residential approvals also lifted in August after a softer period in the middle of
the year. Whilst consenting remained robust through lockdowns, the suspension of construction under Alert Level 4 (and to
a lesser extent Level 3 restrictions in Auckland) will mean that consents issued during lockdown added to the backlog of
work to be done, further elongating the cycle. Putting any material shortages and supply chain issues to one side, we expect
construction activity to have recovered strongly as restrictions were lifted.


Residential consents defy lockdowns
Residential consents carried on recent momentum in August to set a new monthly record of 52.5k (seasonally adjusted and
annualised) reported approvals, up +4.1% mom, +35.5% yoy. Detached dwellings were down -4.8% mom and up +35.5% yoy. High
density dwelling approvals, which can be volatile month to month, were +14.3% mom and +57.4% yoy. All regions experienced growth
in July, led by Canterbury (+61.1% yoy), Auckland (+55.4% yoy), and Waikato-Bay of Plenty (+34.1% yoy) whilst Wellington (+11.4%
yoy), Regional South Island (+16.0%) and Regional North Island (+18.4%) had slightly more subdued growth. 12 month-rolling floor
area consented, the best indicator of future residential activity, was up +22% yoy.


Non-residential retains strength
Non-residential consents were strong again in August after a softer June month with value/sqm +16.7%/+9.1% yoy. Health,
commercial, retail, industrial and office experienced yoy improvements in August whilst accommodation and education declined.
Non-residential approvals are lumpy by nature due to the relative size of projects, on a rolling 12 month non-residential value
consented was +14.7% yoy (and overtakes July for the second highest 12-month period on record) while area approved (sqm) was
down -1.7% yoy. Accommodation and retail were the only key sectors to see the value of consents decline on a 12-month rolling basis,
which is not surprising given the pandemic's impacts.

[Hoop]

This has come down quite a way from recent highs. Thoughts? My price alert went off and looking to buy.

A late price drop off in Wall St has put downward pressure on the NZX and I suspect it to affect global markets as they open..Interesting to see FBU's price holding steady. Chartwise (reflecting trading behaviour) this steadiness with yesterdays uptick off the bottom of the slow stochastic indicator (short term indicator) gives trading confidence that the 7.00 support level may once again hold. If overwhelming selling pressure pulls the price back and breaks the 7.00 support it will put FBU"s Bull status under threat as the previous thought of a Bull market correction may be perceived now by investors as something more ominous such as a hind sighted view of a slow market cycle reversal to Bear Status.

Gee FBU has been a fanastic stock to have in a portfolio this last year..One can't complain being up 100%...eh.
Perhaps this rise could be seen as too fast and investors sees FBU having a well deserved breather..

As always time will tell.

FBU 30092021.jpg