MPG - Metro Glass

[JeremyALD]

Well I've certainly been taught a damn good lesson by this stock. It really has screwed me over!!

95 cents now. It's getting punished. Question is do I ride this out or get out?

[TheHunter]

Depends, what do you value this stock at?

[JeremyALD]

Depends, what do you value this stock at?

Well above this, but the chart is so bloody bad I should of jumped out a long time ago

[t.rexjr]

Well I've certainly been taught a damn good lesson by this stock. It really has screwed me over!!

95 cents now. It's getting punished. Question is do I ride this out or get out?

Might not have an option looking at the buy side, though surely an over correction now!

[TheHunter]

Well above this, but the chart is so bloody bad I should of jumped out a long time ago

Looks like you've answered your own question.

This stock gets thrown around a lot from the large players, suspect someone still selling down and a bit of a panic sell today..

[Balance]

Well I've certainly been taught a damn good lesson by this stock. It really has screwed me over!!

95 cents now. It's getting punished. Question is do I ride this out or get out?

Reporting interim results this month so nervousness setting in?

Drop in NZ$ will impact on margins as raw materials and some glass imported from overseas.

[t.rexjr]

... some glass imported from overseas.

Though I may stand to be corrected, I believe that should be All glass...

[Balance]

Though I may stand to be corrected, I believe that should be All glass...

https://www.nzgeo.com/stories/looking-into-glass/

Says here that NZ does manufacture glass and even export some!

[winner69]

Reporting interim results this month so nervousness setting in?

Drop in NZ$ will impact on margins as raw materials and some glass imported from overseas.

....esp if they have some fixed price contracts (maybe even priced at low margins in first place)

H2 17 gross Margin was only 44% v normally 53% ...has this continued into new financial year.

[TheHunter]

H2 17 gross Margin was only 44% v normally 53% ...has this continued into new financial year.

Yes, there has to be to some extent as EBITDA is expected to be in line with 1H FY17 with revenue growth. As to exactly what extent, will have to see what revenue comes out at.

Margin erosion has been due to poor planning hence all the mgmt reviews etc. Lost efficiency, suspect too much labour planned. However, this still anticipated to recove in 2H and then even more so in FY19 as a result of PPE investment (significantly increases efficiency & reduces labour) and their strategic review.

Plenty of consents in the pipeline with a year lag to keep them busy for the foreseeable future. End of the day we can still anticipate a conservative 11.5cps for FY18 and a gross divi of 7.6cps, with margin growth, and therefore eps growth, coming on in FY19. Market price still seems a quite harsh given this.

Hope this strategic review changes the focus to margin optimisation, rather than top line growth - they have already achieved that. Record revenues, time to turn it into record profits.