FBU - Fletcher Building

[BlackPeter]

I was working on a DCF before COVID hit. Shall I finish it? Would anyone be interested in that?

Absolutely. Obviously - a DCF is only as good as the ability of its author to look into the future and accurately predict future income, revenue and margins.

What are your working assumptions? How do you see the post-Covid economic crisis unfold, and how will this impact on FBU?

[Habits]

Not quite sure the TA looks exciting ... it appears it failed again to break through the $4.16. Double (or if you like triple ) top. Pretty bearish signal...

Do you still hold that bearish view BlackPeter? The company is being supported today instead of being rubbished

[BlackPeter]

Do you still hold that bearish view BlackPeter? The company is being supported today instead of being rubbished

Well, SP did crawl slightly above the previous peaks (though not yet by much). SP is as well above the MA 200 (though not by much either). If you look at RSI, this seems to come down as we speak, which could indicate SP just arrived its recent peak.

I'd say from a technical perspective it could get both ways ... from a fundamental perspective however there was nothing which changed my mind.

However - fundamentals have typically little impact on the short term movements of the share market.

Anyway - I don't hold and don't intend to buy at these levels ... but the markets well might disagree with me :

[CCcc]

Thanks for your nice post. yes, I totally agree with you. All sold yesterday, even though it really surprised me with the big rise today.

[Checkmate]

Looking good holding my shares now, since the lows of covid! When the economy recovers a bit I'm expecting FBU to return to around the $5-6 mark. There's a LOT of housing development going on lately.

[Balance]

Looking good holding my shares now, since the lows of covid! When the economy recovers a bit I'm expecting FBU to return to around the $5-6 mark. There's a LOT of housing development going on lately.

And prices of building materials are going up.

GJ Gardner increased their quote of a new build for a friend from $2800 sqm to $3000 sqm last week. Reason? Increased costs including building materials.

[Sideshow Bob]

And prices of building materials are going up.

GJ Gardner increased their quote of a new build for a friend from $2800 sqm to $3000 sqm last week. Reason? Increased costs including building materials.

And wouldn't be high spec at that price.

[Lion_graf]

Wouldn't be increased demand for housing pushing square neterage quotes up? Plenty of work for builders, why not build for a higher margin?

Can always drop prices when the lending slows and low interest rates rise back up to above 4%

[Checkmate]

And prices of building materials are going up.

GJ Gardner increased their quote of a new build for a friend from $2800 sqm to $3000 sqm last week. Reason? Increased costs including building materials.

Jeepers, I’ve recently signed for building a house with Mike Greer and it’s more like $2,500 per sqm!

[sb9]

Looking good to clinch 5 handle this side of Christmas....