CAV - Cavalier Corp (Carpets)

[noodles]

The sharemarket is valuing CAV as though it has no future. When this happens the market is sometimes correct but often just hormonal.

Yes, the market is treating the stock as if it were a "poison chalice".
The balance sheet makes interesting reading. Is all that stock really worth that much?

[Beagle]

The sharemarket is valuing CAV as though it has no future. When this happens the market is sometimes correct but often just hormonal.
Problem is low shareprice makes it harder to raise capital. I am only interested in the business rather than the noise. Winner, what estimate would you have on the loss of market share to Godfrey hirst on the business besides hyperbole?
My main complaint with management is they haven't really marketed the benefit of wool carpet, I like it much more than synthetic. I understand the wool share of the NZ market continues it's long term decline.
There are some ads now but the synthetic stuff is cheap and pretty good and I think this is a clincher.

Its cheap, feels fine, and is extremely durable. That's the nub of the issue for Cavalier. People, myself included who is currently a Cav user who's carpets are very tired, simply cannot see nor do they understand what the benefits are of paying a substantially higher price and seeing as Cavalier won't tell us why we should, (honestly I cannot remember the last time I saw one of their adds so they're not advertising much or I'm fast forwarding through their adds using my Sky remote or both) then I think its hard to see how they turn their ongoing declines in market share around ?

Welcome back to Winner69 !!

[noodles]

Do you have a view or just asking about the inventory?
Yup call your job a poisoned chalice and watch the stock get pounded.
What we really need in NZ are more bullpoo artists aye noodles. There was a time we called a spade a spade.

The debt levels are a red flags for me. If the inventory was to be written drown, there would not be much in the way of assets. Some property, but no way near the level of debt. Banker is BNZ. I'm not an expert on this stock and don't own it. But it is definitely something shareholder should understand.

[Beagle]

Independent director Graeme Edmond has resigned. A short spell - appointed February, 2014. Could be any number of reasons but it's not encouraging for a company to lose a director so quickly.

Agreed especially one with his experience. In the normal course of business its unusual for a recently appointed director to resign so quickly.

[PSE]

Thanks fair call yup I should understand and you don't need to noodles.

[winner69]

Agreed especially one with his experience. In the normal course of business its unusual for a recently appointed director to resign so quickly.

Announcement said '..... Graeme Edmond resigned from the Board at the conclusion of today’s meeting of the Directors.'

Hmm .....a big argument or something? Unrest in the Board Room?

Reading between the lines Edmonds packed a sad and said stuff it.

[winner69]

Even if they had to sell the inventory at a discount they would reduce the bank debt and make me happy.
Would you question the inventory if the shareprice was $1.5? If not then what has changed? I would like to know if you have an insight on the inventory but I am just hearing nervousness about the share price in your question noodles.
I understand they had to build stocks to support the synthetics and this is a major reason for the debt being too high.

Inventories were a worry in 2012. Were $62m then .....not much different from now, except sales were higher. And shareprice higher as well.

Their reports over the years say they need to reduce inventories .....still trying are they?

[Beagle]

Announcement said '..... Graeme Edmond resigned from the Board at the conclusion of today’s meeting of the Directors.'

Hmm .....a big argument or something? Unrest in the Board Room?

Reading between the lines Edmonds packed a sad and said stuff it.

You're on too it mate, exactly what I was thinking although I'd bet my last dollar he used far more more descriptive words to announce his resignation

[Crystal Ball]

Its cheap, feels fine, and is extremely durable. That's the nub of the issue for Cavalier. People, myself included who is currently a Cav user who's carpets are very tired, simply cannot see nor do they understand what the benefits are of paying a substantially higher price and seeing as Cavalier won't tell us why we should, (honestly I cannot remember the last time I saw one of their adds so they're not advertising much or I'm fast forwarding through their adds using my Sky remote or both) then I think its hard to see how they turn their ongoing declines in market share around ?

Welcome back to Winner69 !!

Well, having installed a top of the line wool carpet only 10 years ago and seeing how the sun has basically killed it, along with impossible stains to get out without wrecking the pile, we are about to re carpet and will never ever go back to wool- it's simply y more expensive and less durable.
Unfortunately for Cavalier, the new solution dyed nylons etc feel and look like wool but will withstand the test of time so much better. Also huge benefits in being able to take any stain out easily without wrecking the carpet. IMO wool carpet is going to be a thing of the past.....

[Beagle]

Well, having installed a top of the line wool carpet only 10 years ago and seeing how the sun has basically killed it, along with impossible stains to get out without wrecking the pile, we are about to re carpet and will never ever go back to wool- it's simply y more expensive and less durable.
Unfortunately for Cavalier, the new solution dyed nylons etc feel and look like wool but will withstand the test of time so much better. Also huge benefits in being able to take any stain out easily without wrecking the carpet. IMO wool carpet is going to be a thing of the past.....

Totally agree with you. We have three dogs and trying to get their pee stains out of the carpet the odd time they've gone inside is a real nightmare, thankfully most of our house is eucalyptus hardwood floors.