MPG - Metro Glass

[Beagle]

It seems to me that certain fund managers got their knickers in a twist about under-performance in a boom. If you can't make money in a boom, when can you make it? Just a few thoughts about booms...

In a boom, companies are tempted to ramp up, expand, recruit, borrow. It's a boom, there's a shortage of skilled staff, so unskilled staff come on the books, quality suffers, product is returned, deadlines missed, penalties ensue, profits disappear....
MPG, I hope, are looking at the long term, not compromising quality, delivering on time, not expanding simply to meet demand, and therefore, not making big profits in a boom, but making sure they will still be around in the bust.

You want a tortoise in this sector, not a hare.

I think you paint a pretty realistic scenario of what may have happened. Hopefully they are learning from mistakes made quicker than Fletchers management are. Then hound suspects Fletchers have themselves locked into fixed price contracts that will affect the company for several years hence and reckons anyone holding that stock is barking up the wrong tree. Jury is out on this one and will be deliberating for quite some time.

[Hectorplains]

I think you paint a pretty realistic scenario of what may have happened. Hopefully they are learning from mistakes made quicker than Fletchers management are. Then hound suspects Fletchers have themselves locked into fixed price contracts that will affect the company for several years hence and reckons anyone holding that stock is barking up the wrong tree.Jury is out on this one and will be deliberating for quite some time.

Agreed. There seems to be some fervent bottom picking going on here (cue: the usual ****ty fingers banter.) Same sentiment was being spruiked in early August when sp was 30% higher and the good times were ahead...

[Hoop]

So what are you saying? NZ will not increase but reduce the number of houses we are building? New houses will be built with less windows? Or are you saying that the builders who require at the moment a one to two week turnaround for getting new windows will be happy in future to order their new windows in China and wait for 8 weeks until they arrive?

No ..It's the lag effect.. Cyclical Industry response to extra demand very slow..industry response to a satisfied market is too slow...So like the past, in the future there will be shortfalls followed by glut....By the time the industry reaches the speed that is needed, surpluses will start appearing...Typical Cyclical stuff.. ..As mentioned on this thread investors attitude towards these companies that supply a cyclical industry depends on how well they perform during the industry's good times as a point of reference of how well they could survive during the not so good times...MPG is in that group that investors are taking a grim view of at the moment, as reflected by their discounted shareprices...

[percy]

Serial underperformers manage to underperform in good and bad times.
They are consistent.

[winner69]

Serial underperformers manage to underperform in good and bad times.
They are consistent.

......and invariably come out with pretty cool presentations painting a picture of how wonderful they are and they going to grow heaps forever by doign wonderful things

Keep thinking of MVN and how similar the Metro 'story' seems to be

[percy]

......and invariably come out with pretty cool presentations painting a picture of how wonderful they are and they going to grow heaps forever by doign wonderful things

Keep thinking of MVN and how similar the Metro 'story' seems to be

I keep thinking the same.
Pages of drivel.
Yet it reads and sounds so good,so carefully thought out,and just so exciting,being on the cusp of greatness.
True world trend setters.Leading the world from the bottom of the world too.

[Fatboyj]

Serial underperformers manage to underperform in good and bad times.
They are consistent.

New management to the rescue.

[percy]

New management to the rescue.

With a 35 page strategic plan.?
Colourful graphs,pie charts,and plenty of jargon.?
This time it will be different.
"Let's do this."

[winner69]

New management to the rescue.

...when?

Has Rigby decided to move on or something? Has 5 years been enough for him?

[Fatboyj]

Nooooooo, its whats needed.