MPG - Metro Glass

[BlackPeter]

Just looking at the indicators: RSI is going up, but still below 30 (not really a signal yet) - and volume was roughly 1.5 times average turnover (which is good, but not overwhelming). Obviously still ways below any MA and even too early for higher highs ...

Maybe a bit too early to buy back in - looks in my view so far quite similar to some of the ripples before

Attachment 9218

... and while I generally think that the election outcome will make little difference to many companies - MPG might be a bit different - and certainly a prolongation of the uncertainty won't be good for them. Another reason in my view to wait a bit longer.

[Baa_Baa]

You'd need to DYOR but my contacts are suggesting a topped construction market moving into decline, sales pipelines and closed deals in some big name brands has dropped off markedly in this quarter, the immediate future looks uncertain. No clues as to why, but the cyclical nature of the industry could be in play. Just sharing.

[winner69]

You'd need to DYOR but my contacts are suggesting a topped construction market moving into decline, sales pipelines and closed deals in some big name brands has dropped off markedly in this quarter, the immediate future looks uncertain. No clues as to why, but the cyclical nature of the industry could be in play. Just sharing.

NZIER Quarterly Survey of Business Opinion fpr the September quarter had this about the buildering sector -

There was a further drop in confidence in the building sector from 18 percent to 3 percent. June quarter GDP had shown another contraction in construction, and indicators suggest further softening in construction activity is likely in the near term.

Profitability in the building sector has also deteriorated, as building sector firms are finding it more difficult to pass on rising costs.

So as you say baabaa things not that bright in the building sector.

Don't forget Metro's had an abysmal Gross Margin of 44% in second half of last year (normally 53% odd) - a sure sign that they were both discounting contracts and were 'finding it more difficult to pass on rising costs'

[JeremyALD]

NZIER Quarterly Survey of Business Opinion fpr the September quarter had this about the buildering sector -

There was a further drop in confidence in the building sector from 18 percent to 3 percent. June quarter GDP had shown another contraction in construction, and indicators suggest further softening in construction activity is likely in the near term.

Profitability in the building sector has also deteriorated, as building sector firms are finding it more difficult to pass on rising costs.

So as you say baabaa things not that bright in the building sector.

Don't forget Metro's had an abysmal Gross Margin of 44% in second half of last year (normally 53% odd) - a sure sign that they were both discounting contracts and were 'finding it more difficult to pass on rising costs'

Oddly I kind of see this as a positive. It just shows you the market is very tough at the moment and MPG is not the only one struggling. That to me gives a bit more credibility to management. I also think the cost pressures may decrease somewhat into the next year.

[Kay]

From a buyers perspective I look at a $1 mpg and think all negatives are just about factored in by now...and she's looking like good value. Or a sensible purchase at least. If you take the election out of the equation I doubt the sp would be at $1...I don't believe the next government will have any material effect on mpgs future...But I think the market thinks it will....the market thinks too much...occasionally

[winner69]

As often the case no news is good news

So flat might actually be tilting upwards

Reckon 110 by weeks end

[winner69]

We're on a roll today ....one of the stars of the NZX

Be ahead of MVN soon .... then whoosh

[winner69]

Barfoot & Thompson sold 658 residential properties in September, down by 37% from the 1051 it sold in September last year and the lowest number of properties it has sold in the month of September since 2008. (Interest.co.nz)

Probably much the same story across the country

Remember the trend in house sales numbers is a lead indicator of future new residential consent numbers.

Flat might have a tilting upward bias this year for Metro ....but allowing for the lags might be tilting downhill next year at least. If anything indications are that F19 might be as good as (or will be worse than) F18

Share price wise today is today and we will see 110 plus early next week.

[winner69]

should have dropped more $000's pm winxs last 20 runs than the amount of zeros I dropped into MPG over the last 6 months

That WINX in Australia pretty good punt eh .....got a huge 20% divie this week.

[nomis]

That WINX in Australia pretty good punt eh .....got a huge 20% divie this week.

Shes even more solid than the NZ share market (-;