CAV - Cavalier Corp (Carpets)

[bull....]

actually the board has a lot to answer for - 2011/2012 we will better align inventory to sales - lol is all i can say there inventory levels are erratic as doenst look like they have acheived this.
employee numbers have dropped considerably over the yrs thru all there restructurings yet employee costs have barely fallen? more chiefs than indians?
operating costs are poorly managed look at there cashflows so no they fail on there cost reduction effort as well.
product mix was clearly wrong - but at least they have realised synthetics are a big space to be in
the list could go on

every year just seemed like more excuses for poor management and board decisions

dont know why shareholders put up with such poor board and management for so long time will tell if its different this time or just another lot of idiots

[bull....]

actually the board has a lot to answer for - 2011/2012 we will better align inventory to sales - lol is all i can say there inventory levels are erratic as doenst look like they have acheived this.
employee numbers have dropped considerably over the yrs thru all there restructurings yet employee costs have barely fallen? more chiefs than indians?
operating costs are poorly managed look at there cashflows so no they fail on there cost reduction effort as well.
product mix was clearly wrong - but at least they have realised synthetics are a big space to be in
the list could go on

every year just seemed like more excuses for poor management and board decisions

dont know why shareholders put up with such poor board and management for so long time will tell if its different this time or just another lot of idiots

[winner69]

With golden city, balance, Roger and winner shareholders now CAV can't go wrong

A real turnaround underway we hope.

I see this as well over $3 one day .... just like RBD and DIL when market sentiment changed for the good

[macduffy]

I hope so, winner.

Correct me if I'm wrong here but RBD didn't actually dip into loss in the dark old days though, did it?

[Balance]

With golden city, balance, Roger and winner shareholders now CAV can't go wrong

A real turnaround underway we hope.

I see this as well over $3 one day .... just like RBD and DIL when market sentiment changed for the good

That will be nice, W69 and I think it is achievable with the new Board and new management.

Bull.... is absolutely correct about the previous board and management - long stayers who had outstayed their experience and competency but were able to hang on in there due to the loyalty of Timpson and Biel. Admirable but inappropriate. The company secretary and CFO was with the company for 28 years! The previous CEO was in the industry for 40 years!

There is potential in the business with the new management and board to extract - the company retains an excellent brand name and has made the difficult transition from its wool foundations to the 'brave new' world of synthetics and wooden floorings. Late but better late than broke - which Cavalier was heading towards in the early part of this year.

The company is trading on a PE of 10X - not very demanding given it is turning around. A confirmation of its recovering fortune will see institutional interest back in the stock so $1.00 by June next year is realistic.

[Balance]

With golden city, balance, Roger and winner shareholders now CAV can't go wrong

A real turnaround underway we hope.

I see this as well over $3 one day .... just like RBD and DIL when market sentiment changed for the good

That will be nice, W69 and I think it is achievable with the new Board and new management.

Bull.... is absolutely correct about the previous board and management - long stayers who had outstayed their experience and competency but were able to hang on in there due to the loyalty of Timpson and Biel. Admirable but inappropriate. The company secretary and CFO was with the company for 28 years! The previous CEO was in the industry for 40 years! It's no wonder that the company simply had no new ideas or new direction.

There is potential in the business with the new management and board to extract - the company retains an excellent brand name and has made the difficult transition from its wool foundations to the 'brave new' world of synthetics and wooden floorings. Late but better late than broke - which Cavalier was heading towards in the early part of this year.

The company is trading on a forward PE of 10X - not very demanding given it is turning around. Turnaround stories usually see stocks trading on forward multiples much higher than that but Cavalier has disappointed twice too often.

A confirmation however of its recovering fortune will see institutional interest back in the stock so $1.00 by June next year is realistic.

[winner69]

I hope so, winner.

Correct me if I'm wrong here but RBD didn't actually dip into loss in the dark old days though, did it?

Correction to earlier post

RBD did report a loss in F07 and share price was down as low as 57 cents shortly after

But as things changed so did market sentiment

[noodles]

Lots of excitement and bullish talk on this thread. And it appears some respected posters have taken a position. So I thought I might take a closer look. I decided to do some peer comparison on other listed building companies.

My prefer metric for peer comparison is EV/EBIT as it takes into account debt and the ability to pay out cashflows to shareholders.

These figures are based on FY16 consensus broker forecasts.

	EV	EBIT	EV/EBIT	Yield(net)
FBU	6239	675	9.24	5.64
STU	288	36.7	7.85	9.29
MGL	350	32.3	10.84	4.93
CAV	76.8	8.7	8.83	0

So nothing to be excited about at the current price level. Perhaps this turnaround will take hold and as Balance suggests FY17 will see further earnings growth.

Best of luck to holders.

[h2so4]

I think we have a much smaller business now and something that can be improved upon and generate profits.

[Rhodium]

Lots of excitement and bullish talk on this thread. And it appears some respected posters have taken a position. So I thought I might take a closer look. I decided to do some peer comparison on other listed building companies.

My prefer metric for peer comparison is EV/EBIT as it takes into account debt and the ability to pay out cashflows to shareholders.

These figures are based on FY16 consensus broker forecasts.

	EV	EBIT	EV/EBIT	Yield(net)
FBU	6239	675	9.24	5.64
STU	288	36.7	7.85	9.29
MGL	350	32.3	10.84	4.93
CAV	76.8	8.7	8.83	0

So nothing to be excited about at the current price level. Perhaps this turnaround will take hold and as Balance suggests FY17 will see further earnings growth.

Best of luck to holders.

I got in at 60c. Altho should have brought the bounce at 51c. This was based on a momentum/TA view point.

Im curious as to the reason for others recent entry?