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 !!
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's disgraceful and immoral, on the same level as the CEO of Tegal getting near 4 million, except on a larger scale.
Surely that's 54 in Fletcher Building rather than 54 in Fletcher building and interiors?Not too bad considering the size of the company and business units... Most of which are very successful.
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 !!
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.
Last edited by Beagle; 08-02-2018 at 06:18 PM.
Ecclesiastes 11:2: “Divide your portion to seven, or even to eight, for you do not know what misfortune may occur on the earth.”
Ben Graham - In the short run the market is a voting machine but in the long run the market is a weighing machine
Surely that's 54 in Fletcher Building rather than 54 in Fletcher building and interiors?Not too bad considering the size of the company and business units... Most of which are very successful.
I'd like to see the job descriptions of those 54, I bet many of them do no more and have no more responsibility than the village manager of a large 400 resident retirement facility, who are on around 100k.
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