CAV - Cavalier Corp (Carpets)

[Lizard]

This is a better effort at marketing wool than the cav website.
http://www.karastan.com/carpet/karastan-wools.aspx

Am I right in thinking CAV are supplying wool carpets to Mohawk under the Karastan brand now?

[TheHunter]

Jeez share rpice down to 31 cents

NTA of $1.22 I see in the last accounts

Where else on the market can you get $1.22 for 31 cents

Don't forget the expected write downs on the carrying value of certain assets.

[Beagle]

Craigs rate it a SELL. Waiting for evidence of turnaround traction and reduction of debt. CEO quitting is basically saying they've run out of idea's.
Big surprise that they are undershooting their recent very broad guidance...the sort of target $1m - $4m that's so wide you'd think a blind man with a cane could easily hit but not for these esteemed operators.
I tell ya, the cartoon character dog Mutley with all his dozens of fleas would make a better proposition to get into bed with than this dog.

[winner69]

Craigs rate it a SELL. Waiting for evidence of turnaround traction and reduction of debt. CEO quitting is basically saying they've run out of idea's.
Big surprise that they are undershooting their recent very broad guidance...the sort of target $1m - $4m that's so wide you'd think a blind man with a cane could easily hit but not for these esteemed operators.
I tell ya, the cartoon character dog Mutley with all his dozens of fleas would make a better proposition to get into bed with than this dog.

What's surprising is that Mckenzie has probably considered calling it quits for ages, and others have even calling for his blood, and they don't appear to even have a succession plan. All they say is
"....the Board has appointed CFO, Paul Alston, as interim CEO"

That puts strategy implementation between the eight ball ...unless Paul is to be the an.

Amazing

[winner69]

Am I right in thinking CAV are supplying wool carpets to Mohawk under the Karastan brand now?

Way forward has this as an initiative ".... is the creation of alliances with key global players in the carpet industry"

Hmm .....maybe one of the partners might see CAV as a dirt cheap acquisition to facilitate entry to ANZ markets.

Old badly run carpet companies under new owners do very well ....the Feltex brand is doing well I understand

[Beagle]

Blind men walking around without a cane...

[silverblizzard888]

Forecasting a loss this year, doesn't seem things are going well considering they estimated profits 1-4 million and with CEO gone its not a good sign, though should they drop any lower I might consider the risky move to buy into them with their asset to cover my investment.

http://www.radionz.co.nz/national/pr...nd-changes-ceo

[Gunny]

If you had 31c to spend, would it be better in CAV or TNR?

Gunny

[percy]

If you had 31c to spend, would it be better in CAV or TNR?

Gunny

One is expanding,with turnover and profit increasing,and the company achieving what they are setting out to do,with excellent management making good decisions.
The other is facing ongoing troubles.Directors have had to bring in outside consultants to advise a business plan.[I read that as management do not know how to run the business].It is hard to guess whether the company will survive. Remember turn- arounds take longer and cost more to make work.Often they do not work out in the end.The assets are hard to value.A loss making carpet manufacturer's plant is of little or no value to any one. Manufacturing in NZ is an up hill battle.
Disclosure.I hold TNR and may increase my holding depending on their result which is due any day.

[Beagle]

One is expanding,with turnover and profit increasing,and the company achieving what they are setting out to do,with excellent management making good decisions.
The other is facing ongoing troubles.Directors have had to bring in outside consultants to advise a business plan.[I read that as management do not know how to run the business].It is hard to guess whether the company will survive. Remember turn- arounds take longer and cost more to make work.Often they do not work out in the end.The assets are hard to value.A loss making carpet manufacturer's plant is of little or no value to any one. Manufacturing in NZ is an up hill battle.
Disclosure.I hold TNR and may increase my holding depending on their result which is due any day.

Some very astute observations there my friend. All I would add from my experience on seeing how these things work is that there's the very distinct possibility, I'd suggest probability, this company is for all intents and purposes trading at the behest of its bankers and they're insisting on the major accountancy firms involvement because they've lost confidence and trust in the management and board or because they want a second independent opinion, or for both those reasons. This would probably also explain why the CEO has "resigned".

Pretty good chance this thing is very cheap dog tucker for Godfrey Hirst in the not too distant future and I'm not talking about a takeover here. This is pure speculation my crystal ball suggests they'll wait on the side-lines and nick it off the receivers / administrator really cheaply.

Lately I've seen some of their adds appearing on T.V. again but really the nature of their adds hasn't changed much from previous campaigns and doesn't reflect the seriousness of their over-stocked and over leveraged situation. No payments till 2016 simply doesn't cut the mustard any more with consumers these days when Harvey Norman are advertising on a regular basis 50 months interest free.
Consumers have become attuned to expecting better deals than 12 months interest free and these sort of campaigns simply don't engender a reaction from consumers anymore.
CAV need to do something radical to ring consumers bells to get the tills ringing.

I can't say I'm surprised that the board and management don't realise this fundamental sea change in consumer behaviour, (expecting long periods of interest free). Directors and management asleep at the wheel ? I'm not at all surprised their bankers appear to have lost confidence to be quite frank about it.