DLX - Dulux Group

[percy]

Tried to help the SP the other day by buying a 4litre of timbercryal.funny guthrie Bowron were cheaper than bunnings and dulux.

[winner69]

Tried to help the SP the other day by buying a 4litre of timbercryal.funny guthrie Bowron were cheaper than bunnings and dulux.

Well done percy

Interesting about GB being cheaper eh

Bunnings good sales growth figures announced yesterday should help DLX as they are their biggest customer

[percy]

Well done percy

Interesting about GB being cheaper eh

Bunnings good sales growth figures announced yesterday should help DLX as they are their biggest customer

I rang all three.Dulux $121 Bunnings $108 GB $113 and 20% disc brought it down to $91. All prices are approx.So had not GB offered 20% disc Bunnings would have been cheaper.did not try Placemakers.
I was reading somewhere today Bunnings thought Metcash run Mitre 10 would be bigger competitors than WW.Tough business.

[winner69]

Good solid result announced this week .... shareprice should head back to 300 in the next few months

NZ performance didn't look too good .... like Fletchers / Steel and Tube and Cavalier anything to do with housing sees reduced profits .... and like them DLX is waiting for Chch rebuild to get underway in earnest

[percy]

Doing my bit to help you.Brought a 4 litre and an 8 litre of Dulux at Bunnings this morning.
ChCh rebuild.A plasterer who is skim coating a kitchen and lounge for me, told me he has stopped working for one firm as they owe him
$40,000 and they are inturn owed over $70,000 by Fletchers.The trades are sick of not getting paid.
The rebuild getting underway in earnest still seems some time away.It will happen.

[winner69]

Finally sold the shares that ORI gave me last year ... just after the ASM the other day

I didn't rally like it when they said H` earnings will be a bit less than last year but H2 will be pretty good and we will see earnings growth fro the full year ,,, how often do we hear that these days

They talk about how reilisient they are and that they are not badly affected by the ups and downs in the housing cycle but it is the way that homeowners seem to not spending at all that sent out the alarm bells to me.

A lot of their sales are sort of retail and I feel that paint etc is one of these things that comes after food etc ... and it easy to defer that decorating job if cash is a bit tight

Probably wrong but at least my cash .... maybe there is a bit of hope that H2 will bring them through ... but as one of my mentors once told me hope is not a strategy

[percy]

I think you are right.I have been surprised they have stayed up so long.As you point out a paint job is easily put off .

[winner69]

Might have made a mistake .... I hadn't noticed the MD said 'well positioned for growth' not once .... but twice

Bugger ...... certain to go up now ... just like today

[winner69]

I think you are right.I have been surprised they have stayed up so long.As you point out a paint job is easily put off .

Percy .... looks I have got this one wrong

Been solid buying the last week or so and even hit 311 today

Maybe somebody like Akzo hanging around and about to buy them out so they can take the Dulux brand truly world wide .... was always a possibility .... and that would leave all the majors in this part of the world owned by the big players in Akzo, PPG and Valspar

[percy]

Yes,both got it wrong.!!
I had a quick look at the chart and they certainly look very strong.
I am still uneasy on Australian manufacturing,strong Aussie $ making imports cheaper.
So why the strength.? Sorry but I can"t see any reason for it.
Dealing with "the majors" like Bunnings,WW etc leave little profit for the manufacturer.Damed if you supply them,damed if you don't.!!!
I just wonder about the value of the brand.I was at Mall today and parked next to a Christchurch city council van.Must have been paint division and noted lots of "Tradex" paint tins.Don't know who makes tradex.Then I see painters vans with Resene decals,and your mate Warren Buffett owns Benjamin Moore.He may have given up on EBO and now chasing DLX. lol .Yeah right.!!!