CAV - Cavalier Corp (Carpets)

[montana]

Up 8.5% in less than 2 weeks, with no real announcement. Demand currently four times greater than sellers. Have I missed something?

[macduffy]

Up 8.5% in less than 2 weeks, with no real announcement. Demand currently four times greater than sellers. Have I missed something?

May be that the Christchurch re-build is finally getting some traction. CAV is a cyclical stock and should be expected to improve significantly as the economy improves.eg Craigs have forecast a "Forward Gross Yield" - 24 months out - of 11.9%.

Just as likely though it's a case of a rising tide lifting all boats - the NZ market's strong and most "boats" have risen.

[mknz]

Today was quite a happy day for me :-) in the news yesterday cavalier was mentioned as the biggest gainer on the nzx, that makes me think it's the momo's pushing it up today. We're still on track to get to the long term mean price of 2.50 per share, but over the next few days i expect either a correction or flat trading for a week.

[montana]

http://www.stuff.co.nz/business/farm...couring-merger

New Zealand's largest wool scourer, Cavalier Wool Holdings, has not given up on its ambitions to merge its scouring operations with those of New Zealand Wool Services International, despite news yesterday of a $31 million takeover bid for WSI from a Melbourne-based wool merchant.
The bidder, WSI Holdings, an associated company of family-run Lempriere Holdings, has already secured 75 per cent of WSI shares through lock-up agreements with the receivers of two Allan Hubbard-associated companies, which hold 64 per cent of WSI, and senior WSI managers, who hold another 11 per cent.

WSI Holdings will make a takeover offer for all shares in WSI at 45 cents per share, costing it about $31m in total.

Shares in WSI closed at about 37 cents a share yesterday, valuing the company at about $25.5m.

Receivers from PricewaterhouseCoopers have been trying to offload the 64 per cent shareholding once controlled by Hubbard-associated companies Plum Duff and Woolpak Holdings since the two companies were placed in receivership nearly two years ago.

Cavalier last year bid $40m to acquire the scouring assets of WSI. If successful, Cavalier would have gained a monopoly over New Zealand's wool scouring industry, a monopoly authorised by the Commerce Commission.

Cavalier Wool Holdings said yesterday that because it had been given commission approval to acquire the assets of WSI, but not the shares of the company, it had had to negotiate its various offers for the company through the board rather than directly with the receivers.

The board of WSI had been "consistent in its desire to retain its independence, so concluding a purchase of the company's assets was always going to be a difficult task”, Cavalier chief executive officer Nigel Hales said.

“The longer the process went on, the more likely it was that an alternative offer would emerge, and we are pleased that this particular process now appears to be coming to an end.

“The opportunity to combine the two companies' scouring operations remains. We continue to believe that consolidation is the right outcome for the New Zealand wool industry in the face of declining wool volumes and competition from China for unprocessed wool."

WSI Holdings' bid is subject to approval from the Overseas Investment Office.

Asked whether WSI Holdings had indicated what its intentions for WSI were, WSI chairman Derek Kirke said yesterday that it was "very early days" but there had been no indication so far that WSI Holdings had any plans other than to continue to operate it in its current form.

WSI managing director Michael Dwyer and four other senior employees, together with one retired employee, have signed lock-up agreements to sell a combined 11 per cent shareholding to WSI Holdings for 45 cents per share.

Once WSI's board of directors received the takeover offer it would seek an independent appraisal on the offer, which it would send to shareholders, along with the board's recommendations.

WSI's board of directors said that although the company had continued to trade profitably, having a majority of its shares tied up in two companies in receivership had meant a lengthy period of uncertainty for its employees and customers.

WSI reported a net profit for the year to June 30, 2012, of $2.24m, down from $6.64m in the prior fiscal year.

Operating revenue for the year was $201.97m, up from $200.11m in the fiscal year to June 30, 2011.

[clips]

.... tell 'em their dreamin'

[mknz]

It's been fun, thanks for the great ride, CAV still has a long way to go up but I doubt it will climb anywhere near as fast as the past two weeks.

[winner69]

It's been fun, thanks for the great ride, CAV still has a long way to go up but I doubt it will climb anywhere near as fast as the past two weeks.

Hope you haven't sold then mate

15000 new houses as a result of the Chch quakes ....CAV must get a decent share of that one would think

[mknz]

Hope you haven't sold then mate

15000 new houses as a result of the Chch quakes ....CAV must get a decent share of that one would think

I don't deny there is a long way to go, but I bought in at 175 and sold at 212 and 205 for an 18.7% gain in 1 month. I figure CAV will rise another 10% this month but I want more than that. Call me insane. You'll certainly do well, CAV is a very cyclical company :-)

[montana]

I don't deny there is a long way to go, but I bought in at 175 and sold at 212 and 205 for an 18.7% gain in 1 month. I figure CAV will rise another 10% this month but I want more than that. Call me insane. You'll certainly do well, CAV is a very cyclical company :-)

you want more than that, yet you settled for less :scratcheshead:

[macduffy]

I don't deny there is a long way to go, but I bought in at 175 and sold at 212 and 205 for an 18.7% gain in 1 month. I figure CAV will rise another 10% this month but I want more than that. Call me insane. You'll certainly do well, CAV is a very cyclical company :-)

Well done! But I'd love to know what stocks you prefer - for a better than 10% per month gain, that is!