FBU - Fletcher Building

[Greekwatchdog]

Hmm Interesting. From NZ Herald.
Construction and building company Fletcher Building dipped 5c, or 0.67 per cent, to $7.40. Shareholders will be watching with interest news across the Tasman of Kerry Stokes' Seven Group's takeover offer for resurgent building materials giant Boral.


Seven pitched its opening bid at A$6.50 a share for all of Boral, valuing the building materials group's equity at about $8 billion, to which the target company promptly rejected, describing it as an opportunistic bid that undervalues the company.

[Habits]

And again... off 15c/2 percent. Has had a huge run since November ... over 75pct, I guess there comes a time when more results are required. House prices are under pressure, that's going to affect the bottom line.

[Baa_Baa]

And again... off 15c/2 percent. Has had a huge run since November ... over 75pct, I guess there comes a time when more results are required. House prices are under pressure, that's going to affect the bottom line.

FBU doesn't care what the building sells for, they supply the materials and building services to build it. The higher the margin on materials, and the more 'services' they can provide, and the more jobs that are on the books ... all equals an extremely bright future, quite unlike that which you are imagining.

Remember that FBU re-made their strategy and had a monumental shift in business focus, only now is it that we are seeing the results of that. For a long term part time holder and observer, FBU is finally finding itself.

[winner69]

Might hit 8 handle in time for investor day at end of month.

Need a bit of action now for that to happen

[Greekwatchdog]

$300m Buy Back to restart. https://www.nzx.com/announcements/372850

[RTM]

$300m Buy Back to restart. https://www.nzx.com/announcements/372850

And an upgrade..
Feb: $610 million to $660million
May: $650m to $665m

$300M buy back, around 41.67M Shares @$7.2. 5% of the shares on issue.
Is this really the best way to help share holders ? Can't see the SP appreciating 5% on the basis of this.
Understand the rational behind it...but as a retiree who relies on dividends and prefers not to sell....not my preferred choice.

Now if the shares were seriously undervalued...then thats another story....but are they ? Doesn't feel like it to me....but how would I know ?

[LaserEyeKiwi]

And an upgrade..
Feb: $610 million to $660million
May: $650m to $665m

$300M buy back, around 41.67M Shares @$7.2. 5% of the shares on issue.
Is this really the best way to help share holders ? Can't see the SP appreciating 5% on the basis of this.
Understand the rational behind it...but as a retiree who relies on dividends and prefers not to sell....not my preferred choice.

Now if the shares were seriously undervalued...then thats another story....but are they ? Doesn't feel like it to me....but how would I know ?

Well if you wish you can sell 5% of your holdings and consider that a dividend. If you did this, then after the buyback you will still maintain the same percentage ownership in the company as before you sold. Probably end up more tax advantageous for you as the share sales would not be subject to any taxes (presuming you aren’t a trader - consult an accountant etc)

Alternatively if you don’t sell, after the buyback your ownership in the company increases by 5%.

[RTM]

Well if you wish you can sell 5% of your holdings and consider that a dividend. If you did this, then after the buyback you will still maintain the same percentage ownership in the company as before you sold. Probably end up more tax advantageous for you as the share sales would not be subject to any taxes (presuming you aren’t a trader - consult an accountant etc)

Alternatively if you don’t sell, after the buyback your ownership in the company increases by 5%.

THanks. Yes...I could do that.

[winner69]

Well if you wish you can sell 5% of your holdings and consider that a dividend. If you did this, then after the buyback you will still maintain the same percentage ownership in the company as before you sold. Probably end up more tax advantageous for you as the share sales would not be subject to any taxes (presuming you aren’t a trader - consult an accountant etc)

Alternatively if you don’t sell, after the buyback your ownership in the company increases by 5%.

Well if you wish you can sell 5% of your holdings a........, then after the buyback you will still maintain the same percentage ownership in the company as before you sold. AGREE

Alternatively if you don’t sell, after the buyback your ownership in the company increases by 5% --- No, a bit more than 5% ...about 5.263% .....lucky you

But in the big picture of things unless you got zillions of shares it doesn't really make any difference

Sorry, a bit bored at the moment waiting for the due diligence team to turn up ...they are a bit late

[JohnnyTheHorse]

Finally freed up some money in the long term portfolio for a position in this. Been meaning to for quite awhile. With the support of the buyback I think the previous $9 highs could be on the cards later this year.