FBU - Fletcher Building

[Schrodinger]

Agree a price in low $5 might be more suitable. Their incompetence sounds deep rooted and an entire cleanout might be needed.

On the plus side they do have (for how long) a monopoly on the inefficient NZ building market. As the pressure increases on the low productivity in NZ due to the high demand for accomodation the Gov will become increasingly more hands on with regulation + $. Has anyone noted the new China construction companies building in Auckland? Are they bringing in their own China labour too?? I think this is a result of the lack of construction resource here.

[Beagle]

This company is like a bloated old dinosaur. Very poorly managed and governed. I think all and sundry will try and eat their lunch going forward and probably with quite considerable success. A real free for all of new competition, lead by hard working foreign immigrants not afraid of a hard day's work and not expecting a small fortune for their labour either and more efficient distribution channels for building products.

I still think something in the 4's could be on the cards in the foreseeable future as this train wrecks keeps unwinding its way down the track.
Long term I see this continuing to destroy shareholder value and $4.80 might not be the apparent bargain many think it is.

[Balance]

From a broker :

Short covering in Australia keeping post rights issue price up.

Be interesting to see what happens after all the shorts are covered.

[Beagle]

http://www.sharechat.co.nz/article/5...te-losses.html
Just two months ago the CEO told shareholders the convention center would be completed by mid 2019 now SKC tell us December 2019.
Probably sometime late in 2020 if they're lucky lol...the train wreck continues to be the gift that just keeps on giving (for those that like watching these sort of unmitigated corporate fiasco's from the sidelines).

[Schrodinger]

Whos wearing the extra 6 months cost? Is this factored/disclosed by FBU to market? If FBU says mid-2019 then have they not informed the market of the extra 6 months costs. Avoid stock until they come clean.

[iceman]

Heard Rod Oram say on National Radio that another issue for FBU now is that since they announced they’d be withdrawing from the business of building buildings, they’ve seen an exodus of contractors. This could possible be partly to blame for even further delays

[Beagle]

Whos wearing the extra 6 months cost? Is this factored/disclosed by FBU to market? If FBU says mid-2019 then have they not informed the market of the extra 6 months costs. Avoid stock until they come clean.

FBU will be wearing the cost for sure. Plenty more carnage to come in this almost endless fiasco. Bunnings in the Herald today saying they're looking to double revenue in their branded stores within N.Z. within the next few years. FBU vulnerable to attack on their lucrative profit area's of business, left right and center.
Yes Iceman. The team at SUM noted in their address that the availability of construction workers had improved since the FBU fiasco got into full swing. I just hope SUM are discerning in terms of who they hire and their new construction fraud team have clear focus.

[jimmybuffett]

Agree a price in low $5 might be more suitable. Their incompetence sounds deep rooted and an entire cleanout might be needed.

On the plus side they do have (for how long) a monopoly on the inefficient NZ building market. As the pressure increases on the low productivity in NZ due to the high demand for accomodation the Gov will become increasingly more hands on with regulation + $. Has anyone noted the new China construction companies building in Auckland? Are they bringing in their own China labour too?? I think this is a result of the lack of construction resource here.

Sorry missed this yesterday - yes, Chinese are here and they did bring their own labour force, I think the Hyatt down the bottom of town is being built by China Construction Company, 200 workers from China on board. Also was discussing markets with a guy from a civil contracting firm yesterday, he noted he is facing more competition from Australia, and I note that Europeans have picked up NZ companies over last few years - HEB Construction owned by Vinci now, and CPB (used to be Leightons) is owned by Spanish company. Lots of change to come in this sector.

[Raz]

FBU will be wearing the cost for sure. Plenty more carnage to come in this almost endless fiasco. Bunnings in the Herald today saying they're looking to double revenue in their branded stores within N.Z. within the next few years. FBU vulnerable to attack on their lucrative profit area's of business, left right and center.
Yes Iceman. The team at SUM noted in their address that the availability of construction workers had improved since the FBU fiasco got into full swing. I just hope SUM are discerning in terms of who they hire and their new construction fraud team have clear focus.

Best not being a shareholder I reckon..its merit in the end will be an interesting business case study.

[Beagle]

https://www.msn.com/en-nz/news/natio...cid=spartandhp

Some serious food for thought in there. You have to wonder given this is arguably one of the greatest destructions of shareholder value we've ever seen in N.Z. why have we seen very little change at board level ? What's the minimum shareholding anyone ? Could be worth the price of admission to the next annual meeting which could be a real riot !