CAV - Cavalier Corp (Carpets)

[Balance]

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?

Invest on the way up with a turnaround story, not on the way down.

Still risks around but building and refurbishment activity still expected to be strong for a while yet.

Record low mortgage rates in Australasia - historically very good for stocks like Cavalier.

[bull....]

building activity should be good for many yrs yet, chronic under supply in auckland and in other regions supply is drying up too so expect the building boom hasnt even started yet.
big upside for cav in synthetics at the mid to value end of the market and if they can sort there inventory levels to be more consistant use money to repay debt and reduce int cost and lower there inventory input costs and lower there wages cost and operating expenses and find some decent people to run the operation and get rid of the last old farts on the board who obviously provide nothing of substance going from there past track record and stop making excuses for poor performance and get the big shareholders to do there job and get rid of these useless people who destroy wealth and employ some young people with savy marketing skills and social media skills and stop crying at head office about godfrey hirst being so superior a operator.
anyway thats why im in for a turn around such a bad run company surely can only get better, i give up if they cant get it right this time and it probably go bust.

[winner69]

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.u

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.

If you think about F17 then CAV EBIT growth will be much higher than their peers (recovery mode v maturity) which would reduce that EV/EBIT to a lower multiple than the others.

Markets are forward looking eh ....CAV is getting on a roll .....you should reconsider your views maybe?

[Saint]

What is happening to the SP?

[Not too Flash]

It is going down which happens in a share-market at times ....

What is happening to the SP?

[golden city]

it is just market reaction rather than cav fundamental .., looking to buy more if under 60c

[vin]

thoughts on current SP? bit of a drop today.

[kizame]

thoughts on current SP? bit of a drop today.

The value just gets better?

On really small volume tho.

[bull....]

waking up from sleep

[vin]

7.1%?! What would cause such a spike?