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13-02-2018, 03:45 PM
#111
Originally Posted by winner69
Good article
https://www.stuff.co.nz/business/101...in-wealth-loss
Not many analysts / investors worry about measuring profits over the cost of capital leaving it to academics and real finance analysts
EVA (economic Value Added) is worthwhile understanding even if it leads to knowing that MVA is the NPV of future Economic Profit. MVA being Market Value Added and is the difference between a company’s Market Cap and Shareholder Equity. Cool eh
Quite interesting as one person wrote.
“I worked for Fletchers three times for the total of 25 years .And I never thought the day would come that Fletchers would end up in a mess that it is wright now . One board member said to me once that? To many Suites have got control of Fletchers ( meaning accountants) And he could see the downward slide of the company coming soon. He said that 20 years back .Sir James won't be turning he will be spinning.”
The accountants I have met or invested in have been great at keeping the books in check, but could not run a business to save themselves only the ones I’ve met
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13-02-2018, 03:47 PM
#112
Member
Originally Posted by Beagle
Great article and some very interesting comments from readers below it. My favourite
I have a good friend who works for Fletcher Building and he describes it a little differently but it boils down to the same thing - a sick culture but of relentless positivity rather than arrogance, where everyone is busy saying everything is great and wonderful and if you point out something is a bad idea or won't work or is flawed then you're "negative" and your career is all but over if you get the "negative" label applied so you just sit through bad decisions and bad ideas going - great!!
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13-02-2018, 03:48 PM
#113
Only a few months ago -
Auckland, 08 September 2017 – Fletcher Building announces that it has arranged additional debt facilities of NZ$345 million with three banks from its existing Syndicate; ANZ, HSBC and Westpac Bank.
The debt facilities have been put in place in line with Fletcher Building’s scheduled refinancing program, and will allow the company to work with its lenders to access longer term funding solutions.
“We are very pleased to have put these facilities in place, which show the continued support we have from our lenders", commented Fletcher Building's Chief Financial Officer Bevan McKenzie, "Fletcher Building has a strong funding profile and will continue to work with our lenders to maintain our diverse sources of debt funding."
Ends
Wonder how the continued support is going
Last edited by winner69; 13-02-2018 at 03:49 PM.
“ At the top of every bubble, everyone is convinced it's not yet a bubble.”
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13-02-2018, 04:02 PM
#114
Originally Posted by winner69
Wonder how the continued support is going
Wonder what numbers they were given in the first place to get that continued support.
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13-02-2018, 04:07 PM
#115
Originally Posted by minimoke
Wonder what numbers they were given in the first place to get that continued support.
You have to think that they were quite bullish
Interesting full announcements said a few times that their debt/equity ratio was a bit low and they needed to borrow more
“ At the top of every bubble, everyone is convinced it's not yet a bubble.”
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13-02-2018, 04:32 PM
#116
Originally Posted by lawson
I have a good friend who works for Fletcher Building and he describes it a little differently but it boils down to the same thing - a sick culture but of relentless positivity rather than arrogance, where everyone is busy saying everything is great and wonderful and if you point out something is a bad idea or won't work or is flawed then you're "negative" and your career is all but over if you get the "negative" label applied so you just sit through bad decisions and bad ideas going - great!!
I've worked for large corporates, NZ and global. There are always disaffected individuals who say much the same thing. The corporate environment just is not a good fit for some people, and they either move on or turn into the bad apple in the barrel if no other employer wants them.
Not saying there are not poor, bad or toxic managers - God knows - but if I heard employees saying stuff like that I would expect to find a very average employee with no future advancement on the horizon.
Some bosses can't cope with disagreements or criticisms, but most can if they already trust the criticiser. It's about managing upwards. And not whinging.
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13-02-2018, 05:01 PM
#117
Originally Posted by winner69
Only a few months ago -
Auckland, 08 September 2017 – Fletcher Building announces that it has arranged additional debt facilities of NZ$345 million with three banks from its existing Syndicate; ANZ, HSBC and Westpac Bank.
The debt facilities have been put in place in line with Fletcher Building’s scheduled refinancing program, and will allow the company to work with its lenders to access longer term funding solutions. [/B]
“We are very pleased to have put these facilities in place, which show the continued support we have from our lenders", commented Fletcher Building's Chief Financial Officer Bevan McKenzie, "Fletcher Building has a strong funding profile and will continue to work with our lenders to maintain our diverse sources of debt funding."
Ends
Wonder how the continued support is going
That bit would be a bit concerning to me if I was a shareholder. Obviously they've been working on finding longer term debt facilities when times were better. How are they going to get on now bearing in mind they hired outside consultants for a so called rigorous evaluation of the degree of problems late last year ?
If I was a banker I'd be most underwhelmed with this ongoing fiasco, now into its second year and third so called thorough evaluation. As a banker making a decision on this I don't think its unreasonable to expect an even more rigorous forensic audit of these problematic projects by a different major accounting firm than the one used last year. That sort of forensic analysis thing doesn't happen overnight. Another trading halt extension coming ? My mind wanders and wonders about the veracity of their internal accounting systems. Very weak internal controls ?
Last edited by Beagle; 13-02-2018 at 05:06 PM.
Ecclesiastes 11:2: “Divide your portion to seven, or even to eight, for you do not know what misfortune may occur on the earth.”
Ben Graham - In the short run the market is a voting machine but in the long run the market is a weighing machine
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13-02-2018, 05:14 PM
#118
Originally Posted by lawson
I have a good friend who works for Fletcher Building and he describes it a little differently but it boils down to the same thing - a sick culture but of relentless positivity rather than arrogance, where everyone is busy saying everything is great and wonderful and if you point out something is a bad idea or won't work or is flawed then you're "negative" and your career is all but over if you get the "negative" label applied so you just sit through bad decisions and bad ideas going - great!!
You're either a career person or not within big companies, you either "buy" the company line, hook, line and sinker, or you'll get nowhere. I agree there's no in between's if you want to climb the corporate ladder. I suspect that's the real nub of the issue with Fletcher's. Too many career climbers looking to get to comfortable over $500K salaried positions of which there are several dozen within the group.
Relentless positivity...hmmm wasn't a certain politician elected recently on that mantra ! No doubt many of us will get sick of her telling us how well N.Z. Inc is doing in the not to distant future !
Last edited by Beagle; 13-02-2018 at 05:18 PM.
Ecclesiastes 11:2: “Divide your portion to seven, or even to eight, for you do not know what misfortune may occur on the earth.”
Ben Graham - In the short run the market is a voting machine but in the long run the market is a weighing machine
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14-02-2018, 12:43 AM
#119
Member
Originally Posted by Beagle
Relentless positivity...hmmm wasn't a certain politician elected recently on that mantra ! No doubt many of us will get sick of her telling us how well N.Z. Inc is doing in the not to distant future !
Or simply a case of cognitive dissonance.
We were told by a 'relentlessly positive' politician that we lived in a country where everything was in 'crisis'. So yes, one can be relentlessly, positive about the sky falling.
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14-02-2018, 08:29 AM
#120
If FBU collapses in a heap could be good for other stocks
FBU weighting in indices falls ...index trackers need to buy more of the other stocks as their weighting adjusted up
Is this how it works?
“ At the top of every bubble, everyone is convinced it's not yet a bubble.”
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