MPG - Metro Glass

**Beagle** · 01-09-2017, 05:04 PM

Originally Posted by winner69

In a recent presentation they had this bullet point under commercial -
Current and forward book of work has been reviewed

Industry speak for whoops some of our contract pricing is a bit awry - affecting profitability

Solution seems to be (under F18 areas of focus) a national pricing strategy (ie someone in HQ checks all conmmercial quotes / tenders)

H217 Gross Margin 44% when normally 53% --- hmmmm

I did mention the Alexandra Park Apartments the other day - observers say hasn't started yet.

Like Fletcher's ! Board approval required now for them for fixed price tenders. I think the nub of the issue is there's too many sales managers on commission or incentive packages for volume / value of sales and they're quite happy to give margin away as long as they get their commission / bonus !

**Kay** · 01-09-2017, 05:32 PM

Had to close up shop on this one today...not the bounce i was looking for!...getting vibes that remind me of my time in the UK in 2007 towards the end of a construction boom...or maybe i'm coming down with a bad case of Jacinda Jitters!

Disc: my vibes do not qualify as financial advice

**Hoop** · 01-09-2017, 07:31 PM

Originally Posted by t.rexjr

Volumes are underwhelming for a suposed undervalued stock. Hope that cat didn't die from lead poisoning...

Originally Posted by Kay

Had to close up shop on this one today...not the bounce i was looking for!...getting vibes that remind me of my time in the UK in 2007 towards the end of a construction boom...or maybe i'm coming down with a bad case of Jacinda Jitters!

Disc: my vibes do not qualify as financial advice

Your vibes are tuned in perfectly..
This bounce is/was very poor (~5%)..The momentum died within a day..the next 2 days incl today saw no momentum just very small wavers between +ve and -ve...Yep T rex jnr this cat's full of lead..
I bought in for the bounce thinking there was a bit of love for this stock...obviously not....
Kay you beat me to the door, I may give it a couple more days..

**winner69** · 01-09-2017, 07:45 PM

Guy on radio this morning was talking about NZ having peak construction and 'peak tourism' at the moment

Metro say 'We continue to anticipate that the strong residential and commercial construction markets in New Zealand will benefit Metro for a number of years to come.'

Possibility it might remain strong ....but growth might not be a given

**percy** · 01-09-2017, 08:05 PM

Originally Posted by Hoop

Your vibes are tuned in perfectly..
This bounce is/was very poor (~5%)..The momentum died within a day..the next 2 days incl today saw no momentum just very small wavers between +ve and -ve...Yep T rex jnr this cat's full of lead..
I bought in for the bounce thinking there was a bit of love for this stock...obviously not....
Kay you beat me to the door, I may give it a couple more days..

Might be a bit like The Calgary Stampede on Monday morning, as punters look for the exit doors.
TA,FA,and Fear signals all lined up.

**JeremyALD** · 01-09-2017, 08:30 PM

I don't really care what happens in the short term. There's no way this dosent have long term value at this price point UNLESS the Australian business is a disaster which so far isn't the case.

We are in the midst of strong construction demand something both national and labour are keen to drive .

**Kay** · 01-09-2017, 09:43 PM

Well Hoop I still have my foot in the door. I didn't quite complete my order due to the selfish market running out out of offers! A few pennies left to make this a side show (or barely profitable if it jumps!).

It does worry me hearing that a politician wants to significantly lower house prices in Auckland. I don't see how that can be achieved without a recession!...and a good one at that!

I'm also not convinced that the construction industry is making a reasonable profit out of the boom (large companies that is). Maybe some of the non publicly traded companies are fairing well.

It seems to me that the price of construction is only going to increase. And will reduce demand.

Happy to walk away from glass...for now...might have another look through the window in November!

**percy** · 01-09-2017, 10:09 PM

Picking the bottom,or guaranteed correct entry time.....!
Easy......
Ring your sharebroker and say you are thinking of buying a few MPG shares.
If the broker tells you not to, as he has just sold his wife's MPG shares,................BUY.!
It really works....