Hope dashed, downgrade issued this morning. What a saga.
Still not making any money
In spite of what they say I doubt if things will ever change with Cavalier
Given the soft market and current trading conditions, Cavalier expects a second half profit performance close to break even and is forecasting a FY19 normalised Net Profit After Tax1 around the $1.9 million reported at the half year. 1H19 result included a $0.6m contribution from the wool scouring business (FY18 $1.4m contribution). Cavalier’s interest in the wool scouring business was sold in September 2018 and provided no further contribution in 2H19.
”When investors are euphoric, they are incapable of recognising euphoria itself “
Out of curiosity I asked the owner of Flooring Xtra in Wellington if CAV is the most selling brand and he said yes. I know that for the whole market probably doesn't mean a lot.
Many got excited with the turnaround story a while ago when the share price went over 60 cents
May never see that again
I think there is still potential there to focus on the high end product and ride the wave of sustainable products. Having said that, I wasn’t prepared to wait and did quit my few this morning taking it below 40 cents again. Might see where they are at next year before investing again.
I also saw/see them as a turnaround story. Last year’s annual report looked like a good start point for them BUT the big gap for me was that I couldn’t see any translation into sales (at that point) so I put them on my radar but not into my pocket. Unfortunately, that still seems to be the same with no major translation into sales...and that is one of my key buy requirements....good housekeeping with good tangible sales. I wonder how much global reach they have; surely a focus on Bremworth, ditching the cheap stuff, and having a really high end product in wealthy markets is doable....goodness, even in the Middle East carpets are necessary - they cart them around on trucks to cover the sand for events.....wool ones at that. A friend of mine purchased one for NZD8k (cost more than our small second car!). Never mind, my accumulated dividends are being redirected into my IFT allocation and I will stay watching....you never know.
Many got excited with the turnaround story a while ago when the share price went over 60 cents
May never see that again
Had a coffee with an old mate who knows a bit about the home/commercial design and specification markets. Said Cavalier being taken to the cleaners by the competition and even Bremworth not really favoured by those who specify floor coverings. He’s not surprised they continue to struggle.
Jeez - had a look at share price ....that 26 cents must be all time low ...probably a reflection of where they heading to.
”When investors are euphoric, they are incapable of recognising euphoria itself “
Must be due to report full year in next week or so
Hope FY normalised profit more or about the $1.9m they said they were going to get
And no doubt a pretty positive commentary about the future ....pop up shops, winning with the trade (yeah right, building relationships with specifier/influencers and global domination of real wool carpets.
”When investors are euphoric, they are incapable of recognising euphoria itself “
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