MPG - Metro Glass

[BlackPeter]

Metro making the most of the current building boom

A couple of more years left in this cycle so more good results to come

https://www.nzx.com/files/attachments/248462.pdf

Solid result, but probably not exceeding expectations. Despite a 23% increase in revenue is NPAT up by just 5% (evil taxman ...) and the increase in liabilities compared to 6 months ago is quite significant (I suppose to buy into their Australian adventure).

As well - while the revenue growth looks good, it is not quite what the analysts predicted for the FY (though admittedly - for the FY there will hopefully be a larger contribution from the Australian branch, i.e. FY predictions might still work out).

Not sure, I expect the SP to shoot from here into the sky ... might even slightly dip (after the initial excitement is over).

Discl: hold (a wee parcel)

[BlackPeter]

Just noticed that analysts on 4 traders somewhat upgraded this stock last week. Slight tick up on expected revenue and earnings over the coming years together with an improved recommendation from hold (5.5) to accumulate (6.5).

One of these boring stocks nobody wants to talk about ... in my view good value and a fast growing company in a growth industry given the ongoing housing crisis and home insulation programs;


DYOR -

discl: holding;

[LAC]

Guidance not that flashy
https://www.nzx.com/files/attachments/252367.pdf

[winner69]

Guidance not that flashy
https://www.nzx.com/files/attachments/252367.pdf

Disappointing eh

Sell heaps more and make stuff all more

Still talking growth ......but the current building boom is nearing its peak ......could signal 2018/2019 could be a bit difficult

[BlackPeter]

Guidance not that flashy
https://www.nzx.com/files/attachments/252367.pdf

Well, yes - while revenue forecast is in the ballpark the analyst expected, NPAT forecast has been pulled back, but still same as last year (but obviously for a larger company, i.e. RoE is down).

They are claiming reduced demand after the Wellington earth quakes (somewhat counterintuitive) and point to some "growing pains" (new factory + Australian adventure + acquisition expenses), which are conceivable.

Might be worthwhile to listen into the conference call today.

[Beagle]

I would have thought in the context of the current building boom, (which won't last indefinitely), and the extra work required because of the earthquake that's a very poor guidance no matter how you slice and dice it.

[sb9]

I would have thought in the context of the current building boom, (which won't last indefinitely), and the extra work required because of the earthquake that's a very poor guidance no matter how you slice and dice it.

Couldn't agree more, if this is what they can manage around building boom time, just imagine what it'll be when its all gone...

Disc - not a holder

[Louloubell]

Talk about a share price being punished!

[BlackPeter]

I would have thought in the context of the current building boom, (which won't last indefinitely), and the extra work required because of the earthquake that's a very poor guidance no matter how you slice and dice it.

Absolutely, and the markets seem to agree. Amazing how the lemmings are jumping off the cliff.

I guess the question is just - is the day of a bad announcement the best time to run? Great opportunity to fall into the usual "undershoot" .

[Beagle]

Its not really a company I follow BP but I note even with the 17% decline in SP today that puts it on a PE of 14 based on last years earnings and investors need to consider if this year's earnings will be lower, (it appears they will be slightly).

On the other hand FBU is on a historic PE of 15 and investors need to weigh up the relative outlook's of each company. Based on a quick and dirty comparison I'd say this mornings fall, (so far), appears fully warranted and quite possibly investors pain isn't finished yet by any means.

They call themselves a growth business in the NZX announcement... Hmmm...growth or cyclical ?, you folks be the judge.