CAV - Cavalier Corp (Carpets)

[Beagle]

NTA well above the share price, could be some breakup value here?

Bank have effectively put them on a choker leash. NTA disappears down a deep hole when you have to start heavily discounting old stock to shift it and on any rationalization plant and machinery would be lucky to be sold for 10 cents on the dollar. NTA of academic interest only in my opinion. Management and directors have it all ahead of them to prove they can service the existing increased bank debt.

[forest]

Not so long ago I went through their spinning and carpet manufacturing plant and it was not inspiring.
The future for CAV might be in tourism, its look like a partly working museum to me.

The above observation I made some time ago, the financials to me are also looking like the ones for a typical museum, a museum struggling to survive.

[Beagle]

https://www.nbr.co.nz/article/cavali...Heads%252520Up

I can't breech copyright so if you own shares in CAV or are thinking of buying you MUST read this and subscribe if you haven't already.

The title of this article accurately describes the content. This could go either way and the bank have appointed their own independent experts to review forecasts, (implies they don't believe management's claim of better times ahead) and are conducting month by month reviews, (implies they don't trust management to run-up further negative cash flow) which speaks for itself. The last time I remember a bank taking such keen interest was with Pumpkin Patch's debt and I am sure we all remember how that eventually played itself out.

How many times have we heard the same old tripe, better times ahead.... Is it too early for a Tui ?

[percy]

Anyone surprised.????

[Beagle]

They shouldn't be as CAV have a VERY chequered track record of issuing forecasts and not meeting them, probably why the Bank have insisted on having their own independent experts review the forecasts for themselves and are closely reviewing results and cash flow on a month by month basis. Thing is, if you cry wolf often enough, (everything is coming right) and it consistently doesn't happen then management shouldn't be surprised the bank have them on a choker leash.

Effectively now trading at the behest of the bank and shareholders shouldn't be surprised if this goes under. They literally are hanging by a thread. Be profitable or else !
I guess the bank might let them keep trading if they're not profitable as long as stock is coming down quickly and their exposure is reduced quickly but that would effectively amount to a managed wind down...and the chances of shareholders seeing any value at the end of that are VERY slim to none.

[peat]

the question is , is it a true wool fibre thread or a synthetic thread ?

[bull....]

They shouldn't be as CAV have a VERY chequered track record of issuing forecasts and not meeting them, probably why the Bank have insisted on having their own independent experts review the forecasts for themselves and are closely reviewing results and cash flow on a month by month basis. Thing is, if you cry wolf often enough, (everything is coming right) and it consistently doesn't happen then management shouldn't be surprised the bank have them on a choker leash.

Effectively now trading at the behest of the bank and shareholders shouldn't be surprised if this goes under. They literally are hanging by a thread. Be profitable or else !
I guess the bank might let them keep trading if they're not profitable as long as stock is coming down quickly and their exposure is reduced quickly but that would effectively amount to a managed wind down...and the chances of shareholders seeing any value at the end of that are VERY slim to none.

im not surprised looks like debt is more than assets under a liquidation - anyway if they go bust will i be able to get some cheap carpet?

[steveb]

At least one of the directors is behind the company,it has to be positive surely:-
Ongoing disclosure notice - Director

2:38pm, 31 Aug 2017 | ADMIN


Ongoing Disclosure Notice
Disclosure of Directors and Senior Managers Relevant Interests
Sections 297(2) and 298(2), Financial Markets Conduct Act 2013

To NZX Limited; and
Name of listed issuer: Cavalier Corporation Ltd
Date this disclosure made: 31 August 2017
Date of last disclosure: 14 May 2003

Director or senior manager giving disclosure
Full name(s): Grant Conrad Webber Biel
Name of listed issuer: Cavalier Corporation Ltd
Name of related body corporate (if applicable): Not applicable
Position held in listed issuer: Director

Summary of acquisition or disposal of relevant interest (excluding specified derivatives)
Class of affected quoted financial products: Ordinary shares
Nature of the affected relevant interest(s): Power to exercise right to vote attached to more than 20% of shares of Rural Aviation (1963) Ltd
For that relevant interest-
Number held in class before acquisition or disposal: 8,467,642
Number held in class after acquisition or disposal: 8,567,642
Current registered holder(s): Rural Aviation (1963) Ltd
Registered holder(s) once transfers are registered: Rural Aviation (1963) Ltd

[TheHunter]

Only less than $30k worth, don't get too excited! ​But yes, nonetheless, is a positive signal.

[macduffy]

Yes, showing confidence in the company. But Grant Biel is one of the founders of Cavalier so there may be as much, or more, emotional attachment there as confidence in the future?