MPG - Metro Glass

[Beagle]

Happy to carry the baton winner, believe you have referred to me with an extra head before.

Beagle, Retrofit and Australia are the two growth sectors for MPG. Consents with a one year lag are also at record highs keeping revenue ticking along for quite some time. Sales growth isn't the issue, they are at record highs. Margin is due to poor S&OP planning. If they fix margin, earnings will grow.

How will they fix margin - reviewing processes and capex investment.

Ol Nigel has a lot to gain if he gets GM humming again.

Cheap Chinese glass will be the issue going forward I think. I really don't buy the retro double glaze story. These days you've got heat pumps with a coefficient of performance as good as 6:1 at very modest cost. I don't think the double glazing thing gets anywhere near the bang for your buck that a good heat pump and good thermal curtains do. Maybe you have a point with Australia but why did they bother trying to expand there when they quite obviously haven't got their own house here in very good order ?

[winner69]

Happy to carry the baton winner, believe you have referred to me with an extra head before.

Beagle, Retrofit and Australia are the two growth sectors for MPG. Consents with a one year lag are also at record highs keeping revenue ticking along for quite some time. Sales growth isn't the issue, they are at record highs. Margin is due to poor S&OP planning. If they fix margin, earnings will grow.

How will they fix margin - reviewing processes and capex investment.

Ol Nigel has a lot to gain if he gets GM humming again.

Love S&OP

Metro says activity (demand) not as high as per their ‘expectations’ .....and do they admit they also gave operational issues as well

Makes you wonder how much a mess the production side would have been in if activity had been at expected levels.

Hope they still not assuming market activity will be increasing at 10% pa

[t.rexjr]

Cheap Chinese glass will be the issue going forward I think. I really don't buy the retro double glaze story. These days you've got heat pumps with a coefficient of performance as good as 6:1 at very modest cost. I don't think the double glazing thing gets anywhere near the bang for your buck that a good heat pump and good thermal curtains do. Maybe you have a point with Australia but why did they bother trying to expand there when they quite obviously haven't got their own house here in very good order ?

I kind of see the retro fit story working to a degree, but do wonder how much volume it will actually put through. In a down turn, renovation work seems to increase and that may help prop up the dip in supplying new builds ever so slightly. I wouldn’t be confident the quantity will ever get to a level of significance without government intervention such as they did with the insulation and heat pump subsidy.

Regulatory standards on safety glass may be on Metros side to help fend off pre-processed imported glass. That said I was involved in the construction of an apartment block a number of years ago where the imported glass balustrade used was 1/6 of the cost of local (Pre Metro). The window joinery and it’s glazing was all supplied locally though...

It’s all about Aussie as far as I can see. I think that arm may well be where the growth lies and might just be the catalyst for regained market confidence should it prove successful. Time will tell...

[TheHunter]

Talking to a mate who's in the industry last night, double glaze also only lasts twenty years or so apparently so will start ticking over itself soon enough too.

Completely agree earnings are a shambles currentl given current revenues. But the market has definitively discounted the share price to account for this. Hoping management can actually do some management and get this mess cleaned up.

[Brain]

Cheap Chinese glass will be the issue going forward I think. I really don't buy the retro double glaze story. These days you've got heat pumps with a coefficient of performance as good as 6:1 at very modest cost. I don't think the double glazing thing gets anywhere near the bang for your buck that a good heat pump and good thermal curtains do. Maybe you have a point with Australia but why did they bother trying to expand there when they quite obviously haven't got their own house here in very good order ?

I recently had an office ,a bedroom and dining room double glazed. I didn’t do this to save money as it was very obvious to me there would be no payback as $4.5K buys a lot of electricity. The rooms that I double glazed are quieter and more comfortable. In the winter I can sit next to a double glazed window and not feel cold which is not the case for a normal window. I will be double glazing the remainder of the house this summer in preparation for the winter. My View is that Retofit d g should be a reliable earner for Metro.

[winner69]

Trex posted ‘ In a down turn, renovation work seems to increase and that may help prop up the dip in supplying new builds ever so slightly’

This is common thinking (a hypothesis) in home related industries (glass manufacturers, paint manufacturers, builders supplies, decorating, renovators and even homewares stores etc). I’ve done a quantitative study on several industries testing such a hypothesis and find it difficult to prove.

If anything the ‘ever so slightly’ comment is the optimistic view.

My conclusion is that companies believe this as it gives them hope that a decline in new building activity won’t hurt them (too much)

[winner69]

Metro share price on a real roll today

Obviously was oversold and the bargain / value guys out in force

Be catching up with MVN this week at this rate

[JeremyALD]

Metro share price on a real roll today

Obviously was oversold and the bargain / value guys out in force

Be catching up with MVN this week at this rate

Certainly a welcome slight. Fairly low volume so far, hopefully not another dead cat bounce!

[percy]

Metro share price on a real roll today

Obviously was oversold and the bargain / value guys out in force

Be catching up with MVN this week at this rate

Yeah right..!!
Looks to me as though MVN has pulled ahead by two lengths.
Those other two laggards FBU and STU are also tiring.
The heavy track is taking its toll.

[janner]

Yeah right..!!
Looks to me as though MVN has pulled ahead by two lengths.
Those other two laggards FBU and STU are also tiring.
The heavy track is taking its toll.

A heavy track and it is not even raining... Yes I did get in at $1.35.. Sold at $1.36.

Still do not think it is worth a punt yet.

Disc. Not a gambler.