CAV - Cavalier Corp (Carpets)

[Lizard]

I see operating cash flow number had brackets around it

Not a good look when you get $111m in from selling stuff but you spend $111m on supplies and wages ..... and then need to pay the bank and the taxman

never mind .... its all seasonal eh .... we'll be right

You going to put up the Altman-Z for us?

[winner69]

You going to put up the Altman-Z for us?

Think it'll be OK .... they don't look too distressed .... making more than they selling .... it is all seasonal

[winner69]

You going to put up the Altman-Z for us?

just in the safe zone ... almost 'on alert' or 'exercise caution' but in view of the seasonal problem most of that excessive stock will go to make it safely in the 'safe' zone

lot of old codswallop anyway this z-altman ..... but cav do what hby did and fix the balance sheet up properly

was interesting the long tirade about the balance sheet in that commentary .... somebody getting at them?

[Lizard]

Yes, agree they will likely be okay. Look to have shed another 70 jobs this half, so that's got to be a saving... still, MD retiring is always a bit disconcerting in a company going through a tough patch. Another dividend cancelled is probably more of a disappointment to loyal holders than a surprise.

Getting inventory back down to $60m would still look comfortable and not suggest too many lost sales due to lack of stock. Was down to $44m in 2006/07 - not sure if they can get back there with Aussie business being bigger these days.

Might have near $25m of debt moving into "current" by next reporting period, going off liquidity profile in last years AR. Will be needing to show a good hand to the bank.

But, yes, should be okay.

[janner]

Liz says..

But, yes, should be okay.

In what time frame ??.. A year ?.. Two. ??..

[winner69]

r tNBR had a front page article 'Cavalier slump sparks call for fresh thinking'

Essentially says that having the best carpet people around as managers and on the Board might blinker thinking as the world changes. Had a lot of quotes from Arthur Lim (dear old fella) .... one being 'I do think, that, given the particular situation the world is in, that it is time for the company to take a fresh approach to repositioning the business'

CAV might have the best wool carpets in the world .... it is a premium product which has done the company well in the past .... but as Lim says 'a premium name will only take you so far .... somewhere along the way you have to start looking at the wider horizon'

Main problem methinks is how they cope with ever increasing consumer demand (globally) for synthetics

[Silverlight]

r tNBR had a front page article 'Cavalier slump sparks call for fresh thinking'

Essentially says that having the best carpet people around as managers and on the Board might blinker thinking as the world changes. Had a lot of quotes from Arthur Lim (dear old fella) .... one being 'I do think, that, given the particular situation the world is in, that it is time for the company to take a fresh approach to repositioning the business'

CAV might have the best wool carpets in the world .... it is a premium product which has done the company well in the past .... but as Lim says 'a premium name will only take you so far .... somewhere along the way you have to start looking at the wider horizon'

Main problem methinks is how they cope with ever increasing consumer demand (globally) for synthetics

Where was the call for a change of leadership or direction or "fresh thinking" 6 months ago when the price was almost $4.

They pulled the DRP, then the dividend to preserve cash, which is a good view by management.

Just like builders, methven or stubes, they are at the historic low in the building sector, and with significant spending expected in future from Christchurch alone, they are still one of the biggest brands for carpet in NZ, they may be out of favour but so is the construction industry.

When the front page article yells SELL, and the price has already gone from $4 to $2, the contrarian in me says BUY

[Ekrub]

This article, earlier February, came with a BUY recommendation. Time to top up?

http://www.sharechat.co.nz/article/6...rporation.html

[winner69]

Getting cheaper by the day ..... below 200 at the mo

his building downturn will end soon and CAV will double in price ..... done that and more already in the last few years

[Lizard]

This building downturn will end soon and CAV will double in price .....

Totally agree... but from what price? (After a 1:5 rights issue at $1.20 in 5 months time perhaps? )