FBU - Fletcher Building

[Biscuit]

Sub $5, watching.

I see FBU are buying their own shares on the market today again. Kinda wonder if shareholders would be better off if FBU would buy someone else's shares.

[BlackPeter]

Just checking again the quality of the predictions of our share market analysts.

In February 2019 the FBU share price peaked at $5.28. At that stage the combined mental power of 12 share market analysts forecasted that over the 12 months to February 2020 the FBU shareprice will slightly rise to $5.45 (consensus), i.e. they predicted a 3% share price appreciation.

They have been correct - the FBU shareprice in February 2020 actually peaked at $5.39, which is only 1% off the forecasted consensus - clearly good enough (Pass).

Looking into the consensus buy recommendation - it was in February 2019 a strong "HOLD"(5.6/10) - i.e. analysts said that the share will slightly outperform the NZX. NZX went up by 21% and FBU went up by only 2%, i.e. FBU underperformed the NZX50 by 19%! Not very exciting for a proposed HOLD and outside the pass criteria I set for this exercise - i.e. this is a "FAIL"

I am doing this exercise as well with other NZX listed stocks - the overview is here:
https://www.sharetrader.co.nz/showth...arket-analysts

14 stocks checked so far (checking for each consensus and buy recommendation);
Consensus shareprice forecasts correct: 2/14; analyst hitrate: 14.3%
Consensus recommendation vs NZX50 correct: 4/14; analyst hitrate: 28.6%

[Timesurfer]

Be interesting to see if spending all their money on share buyback sets them up for failure. Global construction is taking a hit at the moment with this perfect storm and some Chinese companies being forced to walk away from billions of dollars for example. https://wolfstreet.com/2020/03/05/ou...-but-its-hard/

[BlackPeter]

Be interesting to see if spending all their money on share buyback sets them up for failure. Global construction is taking a hit at the moment with this perfect storm and some Chinese companies being forced to walk away from billions of dollars for example. https://wolfstreet.com/2020/03/05/ou...-but-its-hard/

On the other hand - Cindy & Co might prepare a big infrastructure package to stem the economical impact of the virus hype. Who would be closest to the trough? Lets take a guess - shall we?

[steveb]

Be interesting to see if spending all their money on share buyback sets them up for failure. Global construction is taking a hit at the moment with this perfect storm and some Chinese companies being forced to walk away from billions of dollars for example. https://wolfstreet.com/2020/03/05/ou...-but-its-hard/

Not quite all their money.If I recall correctly they are spending 300 mil on the share buyback,did they not get a billion for formica,So yes they should have enough in the warchest to go after other investments

[Balance]

On the other hand - Cindy & Co might prepare a big infrastructure package to stem the economical impact of the virus hype. Who would be closest to the trough? Lets take a guess - shall we?

$8 billion already in infrastructure spend up announced.

Probably another $10 billion to come - all to be borrowed at 0.8% pa so plenty of scope there to pump prime before September election.

[Tomtom]

All in this together now boys:

Fletcher Building has proposed its executives take a 15 per cent cut in pay, but other staff could see a 70 per cent slash in income...

As reported by Fairfax.

[samjaynz]

All in this together now boys:

As reported by Fairfax.

All workers are equal, some are just more equal than others!

[Sideshow Bob]

All workers are equal, some are just more equal than others!

10 staff over $1m last year.

Highest earner on just over $5m - imagine only being only $4.3m - how would they make ends meet!!

[steveb]

10 staff over $1m last year.

Highest earner on just over $5m - imagine only being only $4.3m - how would they make ends meet!!

How on earth can they justify a $5m income for anyone,when they seem to roll from one crisis to the next,and one loss making project to the next.I suppose they can sell off more of the crown jewels but having sold the roofing business and formica whats left?