Feltex (FTX) - All over for shareholders

[Lawso]

FTX continues to languish - up only 1c to 155 in today's strong market (but CAV is down 3c!) I note some insiders' confidence - CFO Des Tolan has just bought 8450 @ 152 and a few days earlier director David Hunter bought 6000 @ 157.

There was an upbeat interview by Jenny Ruth with MD Sam Magill on http://www.sharechat.co.nz/features/...s/article.php/ a couple of days ago but still the market is showing no confidence in FTX, or CAV for that matter. Why?

Discl. Hold both FTX & CAV. Dividends from both arrived simultaneously. Enough dosh to recarpet the lounge. But which brand to buy? Decisions decisions.

[limegreen]

I think it will languish for a bit. Not too long until first quarter report now. They are hinting that dividends might become more frequent, which might give the sp some more impetus.

[nelehdine]

Still watching CAV, Lawso, I obviously am quite pleased they haven't gone up since my sale a few months ago. I WILL get back in at some point but I feel the shares will track sideways for a while longer ... maybe early next year could be a target re-entry point. I have a mental "buy stop" at $5.05 which I feel won't be triggered anytime soon. Really like Hellaby at the moment, might buy a few more at 588 tomorrow if possible !! ( BBQ Factory is going to be a real star for them over the next few years IMHO , I think they got a real bargain when they bgt it a few weeks back !! )

Disc: Hold HBY ... sold CAV at $5 about 4 months ago.

[boring]

Alan Bollard's declaration that the i-rate tightening phase was over should ease some concerns on the impact of high the NZD-AUD f/x on the earnings of this company.

Director purchases is certainly a bullish sign, but FTX needs to continue to deliver the good news. FTX is probably being ignored at the moment because market probably continues to focus on energy sector consolidation. I still rate this share an accumulate on weakness, but who really knows if we have seen the bottom yet.

[Lawso]

A positive view on FTX by IRG (Investment Research Group Ltd) in today's NZ Herald:

LOW FELTEX SHARE PRICE COMPENSATES FOR RISK.

Feltex is one of the few recent IPOs whose shares are trading below their issue price and it just keeps falling. That issue price was itself set at the bottom of the expected range following a book-building process. Subsequently Feltex has produced an excellent result under favourable market conditions. It has a huge slice of the Australasian carpet market and clearly there is some risk in that. The strong local currency and expected downturn in the building industry here and in Australia weighs heavily on investors. But the share price is now so low and projected dividend yield so high (about 8%) the risks are more than compensated for. The company is well managed, financially sound and on target to meet its IPO forecast in the present year.
END

Comment: FTX must be good buying at its current level, IMHO, and will benefit from any weakening in the Kiwi v. $A.

[Snow Leopard]

quote:

Comment: FTX must be good buying at its current level, IMHO, and will benefit from any weakening in the Kiwi v. $A.

Ahem to that, Lawso.

I really believe that the market is under-rating this company, a view that has strengthened with time. Hopefully one day the rest of the world will come round to this view .
Sam & Co, I believe are really on the ball and are willing to make the necessary decisions and investments to enhance the turnover and profit of Feltex.

[PLK]

i think it is a good company
already bought 28000 @1.57
hope it will be showing its true value on its share price soon
when you guys think it will be ??

[limegreen]

FTX has is slowly being accumulated at these lower prices (rather than sold off looking at OBV). I think a combination of things will help. Once the dividends appear stable and have imputation credits I think the yield will make the stock look more attractive. A falling dollar relative to the AUD will help with sales off-shore as well. That's my two cents.

[Lawso]

Forsyth Barr put out a positive report on FTX last week. Summarised as follows: "We consider FTX has a number of attractive investment fundamentals including strong brands and an attractive FY05 yield of 10.3%. FTX is trading at a 25.0% discount to our $2.10 valuation and we reiterate our BUY recommendation."

PS. Note the coy is predicting only 50% imputation on the '05 dividend, forecast to be 13.1cps cf. a lousy 6cps for '04.

PPS. This is my third attempt in the last couple of weeks to ramp up the FTX price and it still stagnates.

quote:
Ahem to that, Lawso.

You should be taking something for that cough, PT

[Snow Leopard]

quote:
You should be taking something for that cough, PT

Amen to that, Lawso [:I]