FBU - Fletcher Building

[Balance]

Downwards bounce will probably continue after todays Moodys Credit Rating announcement. Regardless it's looking pretty cheap ... but I don't have the guts to DCA after waiting a decade to simply break even.

Take it as given now that FBU will do a CR (if required) to maintain its investment grade rating.

https://www.nzherald.co.nz/business/...GISVTWFYEHE3M/
paywalled

Global ratings agency Moody’s has put Fletcher Building on notice for a possible investment rating downgrade as its net debt nears $2 billion to pay for project cost blowouts.

Fletcher Building chief financial officer Bevan McKenzie said in a market announcement on Monday morning the company was committed to keeping its stable rating.

“We will work alongside Moody’s during their review period, demonstrating our commitment to the credit metrics which underpin our rating of Baa2″.

A rating below Baa3 was considered non-investment grade, according to the the ratings scale used by Moody’s.

[troyvdh]

Ive said this before and will say it again...NZ inc has had this obsession with house price appreciation for decades its lunacy.How many folk have listened what Bernard H had to say a few years back.Essentially he said that past and probably current administrations have forbidden any house price correction....am I wrong.

[Baa_Baa]

Ive said this before and will say it again...NZ inc has had this obsession with house price appreciation for decades its lunacy.How many folk have listened what Bernard H had to say a few years back.Essentially he said that past and probably current administrations have forbidden any house price correction....am I wrong.

You might not be wrong at all, but investors should recognise sustained trends and capitalise on it while the opportunity is there, however one chooses to take advantage of it. Railing against the trend is a lost opportunity.

[troyvdh]

"railing against trend is lost opportunity"...
Have you watched "The big short".
Its a great movie.
Are you familiar what occured in Ireland re the property mkt
Please get back to me...
cheers

[alokdhir]

Ive said this before and will say it again...NZ inc has had this obsession with house price appreciation for decades its lunacy.How many folk have listened what Bernard H had to say a few years back.Essentially he said that past and probably current administrations have forbidden any house price correction....am I wrong.

If housing was such a bubble like many think ....like u comparing NZ housing with Big short bubble ...then rents would not be growing out of reach of actual users ...that means there is actual demand for housing thus its not a bubble ...expensive and substandard compared to many others but thats different issue ....NOT a bubble imho . House price correction is politically sensitive as it involves majority of population . But with recent changes to investment property tax treatment ...I dont think its a favoured baby of govt anymore ...its a level playing field on tax side ...not in mindset yet also not in ability to leverage side also

[Joshuatree]

Interesting reading the FBU thread on H/C. a few adamant its the poor quality of the pipe which has burst on long runs, nothing to do with the fitting according to them.

[Toddy]

Interesting reading the FBU thread on H/C. a few adamant its the poor quality of the pipe which has burst on long runs, nothing to do with the fitting according to them.

Yes, the Courts will decide this one.

Place your bets. If you think FBU can defend itself then buy up large.

[Paint it Black]

Interesting reading the FBU thread on H/C. a few adamant its the poor quality of the pipe which has burst on long runs, nothing to do with the fitting according to them.

Iplex have been around a long time and in NZ in my experience provided reliable products, were very helpful on the phone and had good product literature. I'm unsure why the issue cannot be quickly technically resolved by the experts. Why is the problem localised in Perth and not the rest of Australia where the same pipe is supplied? Reading the link below (supplied by Iplex) it will be interesting to see how the WA government refutes this given most localised failures in plumbing products are caused by poor workmanship. Perhaps the government inspectors are running for cover somewhat?


https://www.iplex.com.au/pro-fit-support/

[ynot]

Taylor is adamant there is no issue with integrity of the pipe.

[Joshuatree]

Taylor is adamant there is no issue with integrity of the pipe.

I hope so,unhappy holder of a few here.But there is alot at stake and it may well be a binary decision against little ole NZ. I would think a pipe ( hopefully temp) recall is well on the cards which would hit the FBU shareprice.I would consider topping up around then ( depending on remediation costs if any)for long-term gains