CAV - Cavalier Corp (Carpets)

[Snoopy]

May I suggest you spend $10 or $12 on a smoke detector.They work with both synthetic and wool smoke.
After a good house fire neither carpet is any good.

Of course, no-one would argue against the logic of having a good smoke detector, and as you point out Percy they are not exactly expensive. But I see that as quite separate to the argument of woollen verses synthetic carpet. The smoke detector gives you the signal to get out. Wool is slower to ignite and the fumes are less toxic when it does ignite. So the woollen carpet is giving you the time to get out, or perhaps snuff out any smoldering before the fire gets started. It is a slightly crude analogy, but I see the smoke alarm as the ambulance at the bottom of the cliff, and the woollen carpet the barrier at the top that hopefully means any fire will not 'take hold'. Ideally you want both.

Having said all this, I do admit my current house was built in 1991 as a builders spec and has a synthetic carpet. I don't lose any sleep over that. But it has got to the stage where the living room areas are due for replacement and it hasn't held its colour particularly well. So I intend to replace that section with a woollen carpet.

SNOOPY

[POSSUM THE CAT]

Snoopy suggest you do a test with two scraps of carpet & make sure one is the fire retardant treated synthetic type. You might be surprised.

[Brain]

Personally I think natural fibres are way better than synthetics. I prefer to buy items made from Wool, leather, cotton and wood never plastic. I believe many people think the same way and there will always be a niche market for wool carpets.

[soar]

Being a carpet retailer, we have tried to cover the field by using both wool and solution Dyed nylon carpets in our 2 level home. Both medium price points from the Cavalier group. The wool feels far fare more luxurious and less plastic under foot, and nylon easier to deal with when our aged cat fails to make the litter box. I believe the synthetics are over sold, and their infinite warranties do not cover their loss of appearance retention.

[percy]

soar,
Welcome, and thank you for your comments.

[777]

A 4c dividend in October. Things starting to look up.

[winner69]

A 4c dividend in October. Things starting to look up.

But the shareprice went down after the ann and back to 140

Commentary won't too bad

[Lizard]

Cashflow a lot lower in second half - no longer freeing up inventory. No debt repayments. NPAT heavily reliant on earnings from the 50% holding in CWH. Dividend seems a keen move, but I guess 4cps not going to make or break at this stage. Banks seem relaxed.

[_Michael]

Cashflow a lot lower in second half - no longer freeing up inventory. No debt repayments. NPAT heavily reliant on earnings from the 50% holding in CWH. Dividend seems a keen move, but I guess 4cps not going to make or break at this stage. Banks seem relaxed.

YEah I also raised eyebrows a little when they said they will recommence div

On a positive note maybe it signals their confidence in the outlook.

My humble take is that NZ will start to underpin earnings for all of this exposed to NZ/AU building - namely CAV / MVN / FBU

People are worried about Australia but I have been reading quite a lot of press in AFR Smart Investor which indicates construction is falling moderately but is expected to pick up quite welll in 2014 as building mix tends more away from mining and into residential/commercial building

I am holding these guys and MVN for the time being and will give it another 12 months to see if the NZ uptick flows through to earnings

Everyone talks about CHC but Auckland is also desperately short of housing stock and the government is right now trying to make easier build....

[blackcap]

Call me naive if you will but could someone help me out please. When CAV start saying things like... "normalised is a non-GAAP" form of reporting... etc is that not a form of deflection. Ie are they trying to hide something here? Or is reporting normalised earning "common accepted practice"?

I know there were "restructuring" (we stuffed up and have to fix our mistake) costs, but to me if you report "normalised" you can almost always report a profit if you have a clever enough bookkeeper. For what its worth, if they can avoid future "restructuring" costs, then profits at a slightly higher rate (increase in turnover in NZ and wool prices) and a divvie of 6-8 cents may make $1.40 a good entry point.