FBU - Fletcher Building

[horus1]

Not all advisors in FNZC agree

[Balance]

Not all advisors in FNZC agree

That is actually very gratifying to know.

Makes for a real market.

[minimoke]

I am loathe to use that old saying " a fish rots from the head" but. B&I a complete failure. Fletcher EQR a total failure for a company supposedly "customer first" and Fletcher Living One Central (east Frame) numbers not appearing to stack up. Time for a fine tooth comb to be taken to the whole business.
(Disc: I've been Fletechered so have little sympathy for the state this company finds itself in)

[BlackCross]

MorningStar have just put a valuation of $7.50 and a hold rec..Two things of interest that they mention...

"..Negotiations are still ongoing with the holders of the NZD 1.14 billion in U.S. private placement notes, which still poses a risk..." and "..we anticipate the divestiture of assets, especially those earning low returns with no synergies across the rest of the business. These should be the focus as long as they can be realised at attractive prices. In our opinion, Formica fits the bill on both these criteria...."

Unfortunately I seem to own quite a few FBU... not directly but through Smartshares... and with FBU accounting for almost 10% of NZDividend (DIV) I guess we'll see an almost 10% reduction in this years dividend.

[Beagle]

MorningStar have just put a valuation of $7.50 and a hold rec..Two things of interest that they mention...

"..Negotiations are still ongoing with the holders of the NZD 1.14 billion in U.S. private placement notes, which still poses a risk..." and "..we anticipate the divestiture of assets, especially those earning low returns with no synergies across the rest of the business. These should be the focus as long as they can be realised at attractive prices. In our opinion, Formica fits the bill on both these criteria...."

Unfortunately I seem to own quite a few FBU... not directly but through Smartshares... and with FBU accounting for almost 10% of NZDividend (NZD) I guess we'll see an almost 10% reduction in this years dividend.

Holders of these private placement notes have never been known to spit the dummy and demand their money back early...oh wait they certainly have !!!
I see the potential for a very large capital raise and FCNZ are setting themselves up to be the lead broker / arranger.
Barge pole material. Front row seats to watching the biggest construction cost overrun fiasco of your lifetime are available at the Fortuna Buffet restaurant daily with a requested window seat....its a fascinating watch while enjoying a very nice meal at reasonable cost...I know, I am a recidivist offender and can't help watching train crashes unfold. This morbid fascination has proved unhelpful to the hounds waistline though lol.
This convention center is only 22% complete and is already looking like destroying ~ $500m in shareholder value. With only just one fifth of that project complete and the fiasco of such gargantuan proportions why would anyone trust their latest "guess" at the total project overrun ?

[Balance]

And holders of these private placement notes have never been known to spit the dummy and demand their money back early...oh wait they have !!!
I see the potential for a very large capital raise and FCNZ are setting themselves up to be the lead broker / arranger.

Under the rules, Fletcher can do a $500m placement supplemented by a $15k SPP to all shareholders.

Watch for it.

[winner69]

Holders of these private placement notes have never been known to spit the dummy and demand their money back early...oh wait they certainly have !!!
I see the potential for a very large capital raise and FCNZ are setting themselves up to be the lead broker / arranger.
Barge pole material. Front row seats to watching the biggest construction cost overrun fiasco of your lifetime are available at the Fortuna Buffet restaurant daily with a requested window seat.
This convention center is only 22% complete and is already looking like destroying ~ $500m in shareholder value. With only just one fifth of that project complete and the fiasco of such gargantuan proportions why would anyone trust their latest "guess" at the total project overrun ?

Government won’t be getting much tax out FBU this financial year ....so sort of subsidising this Sky project

And didn’t Sky get more gaming licenses for almost nothing

[Beagle]

Government won’t be getting much tax out FBU this financial year ....so sort of subsidising this Sky project

And didn’t Sky get more gaming licenses for almost nothing

Its hard to be a winner betting against the house isn't it !

[Sideshow Bob]

I'm with Beagle on this. Love a good train wreck me, when it is from the sidelines and have no vested interest (phew).

Struggle to see why the share price isn't lower. But if I was the recently appointed CEO, I'd be trying to throw everything into it so have the potential to come out looking good out the other side. I'd also be taking a large broom through the division.

[minimoke]

But if I was the recently appointed CEO, I'd be trying to throw everything into it so have the potential to come out looking good out the other side. I'd also be taking a large broom through the division.

Alternatively let the SP get hammered, allow previous CEOs to take the blame and then take credit for inevitable SP increase. At best he can now expect to maintain current levels. It ought not be going up any stage in the future.