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FBU, FLETCHER BUILDING LIMITED
plastic
post Posted: Aug 11 2019, 03:46 PM
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I don't think FBU will be doing this, they might though but almost certainly others will be. What will happen when the squeeze comes onto the banks?

https://www.zerohedge.com/news/2019-08-10/c...n-debt-loophole

QUOTE
Like "Crack Cocaine For CFOs" - Aussie Construction Giant Collapses After Hidden-Debt Loophole Exposed
Here’s how reverse factoring works: a company hires a financial intermediary, such as a bank or a specialist firm to pay a supplier promptly (e.g. 15 days after invoicing), in return for the supplier accepting a small discount. The company repays the intermediary at a later date, often on more extended terms than it had with the supplier.
Both sides feel like they have benefited: the supplier gets quick access to the cash it’s owed, albeit at the price of forgoing a small piece of that cash, while the buyer is able to borrow money without having to disclose it as debt, meaning that it can extend its payment terms and expand its borrowing, while maintaining its leverage ratios.

Investors and auditors are often left none the wiser, since it’s entirely up to the company whether it chooses to classify this new debt as a loan or as trades payable. Most choose the latter. It is virtually impossible to discern by looking at a company’s trade payables whether reverse factoring of payables is being included unless the company expressly says so. Most choose not to.




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What did Uncle Mel do to us?
 
plastic
post Posted: Jun 21 2019, 09:49 AM
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Don't know what the new rules are but one can only assume FBU has been in contravention of them for the last six months. Perhaps something will happen by July 1st that makes them compliant.
QUOTE
Auckland, 21 June 2019: Fletcher Building Limited [FBU] advises that it intends to comply with the NZX Listing Rules dated 1 January 2019 from 1 July 2019.





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What did Uncle Mel do to us?
 
plastic
post Posted: Jun 21 2019, 09:29 AM
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After one and half hours today, we have 1,433 shares traded in ten transactions.
Not bad for a top ten company by market cap. Instills confidence back in to investors and their markets.
I don't recall the outcomes of their strategic review being made known either.




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What did Uncle Mel do to us?
 
plastic
post Posted: Jun 20 2019, 10:24 AM
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Wonder what those bond holders are thinking.

If they are seeing what I am, 68,000 shares traded after 3.5 hours trading in one of the NZX big cap stocks, then they must be thinking something is up with FBU as well.




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What did Uncle Mel do to us?
 
plastic
post Posted: Jun 11 2019, 08:22 AM
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I see the standard of analysis is still at kindergarten level going by the article in the Herald today.

Nobody mentions the cash cow of gib being under attack by USG Boral.. Needed investment in to new production facilities. Possible break up of CSR. Booming civil and infrastructure projects and JVs both here and in Australia.

No wonder I stopped paying attention to them a long long time ago. And double no wonder I never use a fund manager.



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What did Uncle Mel do to us?
 
plastic
post Posted: Jan 31 2019, 09:03 AM
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While all the attention put on FBU has been focused on their construction I can't stop thinking about the profitability of their cash cow: Wallboard.

A while back the CommComm. investigated the business practices of the wallboard unit. It was conducted in private and no report was ever released. But someone somewhere has seen their business secrets and knows how to compete with them because of it.

When I drive into Onehunga and see billboards advertising USG/Boral wallboard and pass two of their trucks on the way when Winston's is right around the corner, I can't help but think all those profits that are never independently declared in the financial statements are slowly being eroded.

Ultimately that puts more pressure on the dividend and share price.

Unless they have capacity to produce and market product cheaper than USG/Boral there will be trouble ahead. To do so, they will have to go to China like Laminex did or build a stonking great big factory from scratch for economies of scale. That sounds capital hungry to me. Which brings us back to pressure on dividend and share price.

It's the classic between a rock and a hard place.

Only outcome has to be structural capital change.

Keep an eye on the US based note holders. When they convert is the clue to buy back in. They have priority call on free cashflow, taking it away from the dividend, and conversion to equity will indicate the share price's nadir.



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What did Uncle Mel do to us?
 


plastic
post Posted: Dec 18 2018, 07:08 AM
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Johnathan Ling's coup d'grace gets sold for a discount.

Too many chest thumping egoes been in charge for too long it feels. Wonder what Hughie thinks having his name linked to this message without any involvement in it at all.

More divestment and a name change coming up is my guess.

More heartache as well. Australian market conditions set to get nasty according to media reports. Either they're set for it or gonna get sucked down by it. Might be what the dividend decision is all about.



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What did Uncle Mel do to us?
 
plastic
post Posted: Nov 26 2018, 06:32 AM
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With all the dissing on FBU lately, those US bondholders must be rubbing their hands with glee thinking about how cheap they can convert to equity before the break up, sell off and capital return.

That's the way to do it. Get the interest, convert, get the dividend and return of capital and new equity in New company.

Good if you can get it.

But market distorted need to be taken down for the wider good.



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What did Uncle Mel do to us?
 
plastic
post Posted: Nov 20 2018, 10:23 AM
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This might be where those bond holders decide to convert to equity. Especially if they do maintain that dividend.



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What did Uncle Mel do to us?
 
plastic
post Posted: Nov 13 2018, 04:01 AM
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Wonder why its taking an eternity to finish this strategic review. Is there a spanner in the works? A divided board perhaps. Maybe they're all just a bunch of slackers. Or, more likely IMHO, they're just not allowed to say anything about anything until they are.



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What did Uncle Mel do to us?
 
 


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