IMHO Metro is a very risky investment. Ex-Private Equity ownership from a previous recessionary collapse. Value inflated as economic conditions improve (then sold to the public) and a few cyclical factors helping but valuation across the cycle way too high...
In saying all that the market in general is not awash with good value opportunities - time to be defensive for mine and only hold a few high quality companies with the balance in cash deposits awaiting better value
Originally Posted by percy
And to think I thought you only invested in out performers?
Industry constraints.
Challenges ahead.
Commentary "a bit" bearish.
I think the market is correct.
Well a nice new multi million dollar factory to competitively service the current building boom ....and share price languishes below IPO price. Now $1.66
In spite of good long term prospects this is its lot in life. Methinks its been tarred with the same brush as Fletchers and will be viewed in the same light ....solid but always a bit disappointing.
Good company now. The company will do well .......the share price will always be 'undervalued' ........but not really my type of investment.
Any guesses on when the MPG share price will stop falling? It's the only share I've ever bought on the advice of an "expert". Biggest loss I've had!
Metro Glass as a company will continue to perform well.
However NZ punters aren't that keen on NZ building related stocks. It is tarred with the same brush as FBU and STU and as such the share price will languish and if overall market sentiment continues to be a dismal it will fall further.
You'll get the dividends but can't see the share price of MPG (and the other 2 mentioned) doing much over the next year, eps with its current negative bias
”When investors are euphoric, they are incapable of recognising euphoria itself “
Hey nzx - I didn't realise how far mph has fallen. A 142 close is pretty terrible.
Just confirms building stocks really out if favour.
Rather strange as the building industry still seems to be pretty active at the moment. Talk of weakening economy because Christchurch rebuild peaked put punters off?
”When investors are euphoric, they are incapable of recognising euphoria itself “
Yep. Over 30% down on what I bought it at earlier in the year. Bad timing! Now an NZX price enquiry notice today.
I don't see anything to justify the massive price drop. Yes Christchurch rebuild will peak and slow down but Auckland will steam ahead for years and all those houses need glass.
I'm tempted to buy more.. Would it be good money after bad?
Not loved or wanted at the moment is it ...sinking lies lead balloon
Forecast EPS march 16 us 11 cents to 14 cents. Obviously hose selling believe 11 cents (or less) so at 11/12 PE 130 could be right.
I wouldn't buy anymore until carnage is over.
ASM next week ....hope we hear more but I reckon they make only a bit less than what they said hey wold in IPO docs ....but thy seems enough to have pissed off the market
A large proportion of the CBD rebuild in Chch has a heck of a lot of glass in them ....the construction material of choice now.
Jeez 190 shareprice when I sold seems not that long ago.
”When investors are euphoric, they are incapable of recognising euphoria itself “
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