FBU - Fletcher Building

[peat]

Maybe signs that the company is starting to turn around?
This guy at least appears to know what he is doing.

let me assure you that FBU's various failures within their operations have nothing to do with the quality of their third party vendors. Very tough on the small operators they are. Was just talking about this with someone having to renegotiate their FBU annual contracts and FBU drove the 'everybody is doing it tough' argument hard out, and really screwed things down.

[Grumble]

Financials are usually sorted in the first 4-5 working days of each month right. How interesting that the price has dropped $0.35 since Wednesday ($3.20 as I type), equating to some 10%. I wonder how their prospects look after closing off April and re-forecasting May and June.

Also makes me wonder if there's an announcement around the corner.

[sb9]

Financials are usually sorted in the first 4-5 working days of each month right. How interesting that the price has dropped $0.35 since Wednesday ($3.20 as I type), equating to some 10%. I wonder how their prospects look after closing off April and re-forecasting May and June.

Also makes me wonder if there's an announcement around the corner.

Some big fund is is happy let them go at lower levels over past week or so. T/A wise it looks bit oversold in the short term..

[traineeinvestor]

As reported by Craigs “MSCI – STOP PRESS – its official – Fletcher Building is leaving the MSCI mid-cap Index on 29th May (Contact Energy is NOT going in). In the MSCI small cap Index NZR, SKT, THL are leaving and OCA, NPH, FBU … the deletion / addition of FBU in the mid/small will result in significant net selling”

Meaning it's nothing to do with the fundamentals but may be an opportunity to profit from the forced selling by index trackers (and closet index trackers).

Disclosure: small holding

[sb9]

As reported by Craigs “MSCI – STOP PRESS – its official – Fletcher Building is leaving the MSCI mid-cap Index on 29th May (Contact Energy is NOT going in). In the MSCI small cap Index NZR, SKT, THL are leaving and OCA, NPH, FBU … the deletion / addition of FBU in the mid/small will result in significant net selling”

Ah thanks, that explains price action.

[sb9]

Meaning it's nothing to do with the fundamentals but may be an opportunity to profit from the forced selling by index trackers (and closet index trackers).

Disclosure: small holding

Exactly my thinking too, short term aberration in price not related to fundamentals/financials.

[BlackPeter]

Meaning it's nothing to do with the fundamentals but may be an opportunity to profit from the forced selling by index trackers (and closet index trackers).

Disclosure: small holding

True, but if I look on the other hand on many recent announcements of infrastructure projects which happen to take now at least 6 months longer due to 5 weeks of Covid 19 level 4 shutdown (like e.g. Wellington Transmission Gully or SH1 South of Christchurch) - I would be very surprised if FBU would not have caught the fast slipping deadline virus (FSDV) as well. They have a lot of big projects going on, they have a lot of experience in delivering late and above budget and they are normally one of the first organisations catching the FSDV due to chronic mismanagement and negligible and often incompetent governance.

I recon there is a good chance the next cluster of bad news will pop up soon. Hey - we are talking about FBU after all ...

[traineeinvestor]

I recon there is a good chance the next cluster of bad news will pop up soon. Hey - we are talking about FBU after all ...

Well ... yeah.

Can't argue with FBU's track record (unless we want to try and distinguish "bad" from "abysmal").

That said, what are the odds that, sooner or later, management will adopt a radical new approach and run the business with the intent of making a profit?

[value_investor]

Well ... yeah.

Can't argue with FBU's track record (unless we want to try and distinguish "bad" from "abysmal").

That said, what are the odds that, sooner or later, management will adopt a radical new approach and run the business with the intent of making a profit?

Well we are out of quarantine now. FBU can get back to destroying shareholder wealth again.

[Timesurfer]

I recon there is a good chance the next cluster of bad news will pop up soon. Hey - we are talking about FBU after all ...

Or they can hide their mismanagement in the COVID cluster truck and get the Government to bail them out. At least that is what I am hoping as I took a small holding (against my better judgement) on the basis that surely they must get a boost out of the Government raining money on construction projects. It may not be the short term investment I was hoping for!