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20-04-2020, 11:55 AM
#921
Originally Posted by Mogul
Some great points here Balance. 3 times in 30 years, they do have some form at FBU don't they! Perhaps they will get it right this time with their nice collection of monopoly/duopoly/oligopoly NZ businesses, that do have some decent underlying characteristics as you point out. But who knows? At this point, I am waiting for more proof that they can turn around Australia. Pre-virus they have talked about this a lot but appear to have made minimal progress to date. Will be interesting to see.
FBU's biggest weakness has always been the ego of its CEOs to use the earnings & cash flow of its highly profitable and oligopolistic NZ operations to expand overseas.
Hugh Fletcher did it with UK Paper & expansion into Australia, Ralph Waters did it with Laminex in the US, Amatek in Australia and Jonathan Ling did it with Crane in Australia.
Adamson had the misfortune of having to manage the problematic acquisitions when he became CEO, took his eye off the ball in NZ and blew the B&I divisions up!
Parred back to NZ, FBU has always been a very profitable business.
So it's upwards imo from here for a number of years if or until FBU acquires overseas again - then, get the hell out!
Last edited by Balance; 20-04-2020 at 12:52 PM.
Reason: change ambition to ego
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20-04-2020, 04:21 PM
#922
Originally Posted by Mogul
Great post. That nails it! Your right, if they can stick where they have an advantage (NZ duopolies/oligopolies) FBU could prosper again. Will watch how it unfolds in Australia with interest. Can they earn decent returns on their assets over the ditch a key question? Perhaps Ross Taylor has the background to fix Australia (as well as B&I), but not that much traction yet in Australia.
Best to sell out when they can.
Very few NZ companies do well in Australia - Telecom, Air NZ, Warehouse etc - the list goes on and on. The Australians play rough and dirty, and they are bigger companies with bigger muscles.
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21-04-2020, 02:22 PM
#923
Down 5% so far today,think I might tuck a few away for a long term hold
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22-04-2020, 04:44 PM
#924
https://www.stuff.co.nz/business/121...g-roof--report
Sky City NZICC fire caused by an accident.
Guess there's no more scope for any doubts about the insurance claim anymore despite the roofing contractor wanting a further review of the accident (which has already been peer reviewed).
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23-04-2020, 10:12 AM
#925
Originally Posted by Balance
https://www.stuff.co.nz/business/121...g-roof--report
Sky City NZICC fire caused by an accident.
Guess there's no more scope for any doubts about the insurance claim anymore despite the roofing contractor wanting a further review of the accident (which has already been peer reviewed).
Took a modest position y'day, the level 3 lock down should get them moving quicker than anyone with construction given major priority by govt.
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23-04-2020, 10:48 AM
#926
Originally Posted by sb9
Took a modest position y'day, the level 3 lock down should get them moving quicker than anyone with construction given major priority by govt.
Government is certainly giving priority to the building & construction industry and to big projects to kick start after the L4 lockdown is lifted next week.
https://businessdesk.co.nz/article/f...ects-in-stages
Took the opportunity to invest a few as well.
Watch out for the Aussies still selling FBU down in the afternoons.
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23-04-2020, 10:56 AM
#927
Originally Posted by Balance
Government is certainly giving priority to the building & construction industry and to big projects to kick start after the L4 lockdown is lifted next week.
https://businessdesk.co.nz/article/f...ects-in-stages
Took the opportunity to invest a few as well.
Watch out for the Aussies still selling FBU down in the afternoons.
Yes, did notice that pattern of afternoon selling once ASX opens....that's why I put my bid late in the evening on NZX, almost at low point for the day.
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23-04-2020, 10:59 AM
#928
Originally Posted by sb9
Yes, did notice that pattern of afternoon selling once ASX opens....that's why I put my bid late in the evening on NZX, almost at low point for the day.
Like quite a number of NZX stocks (SKC, SKO, AIA, AIR, MET & ATM), the same pattern - in time of crisis, natural for funds to stick closer to home.
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11-05-2020, 08:19 AM
#929
Pretty cool stuff..
Fletcher Building turns to NZ developer for contact-tracing and Covid-19 safety app
https://www.nzherald.co.nz/business/...ectid=12330520
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11-05-2020, 10:28 AM
#930
Originally Posted by sb9
Maybe signs that the company is starting to turn around?
This guy at least appears to know what he is doing.
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