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FBU, FLETCHER BUILDING LIMITED
plastic
post Posted: May 20 2020, 07:19 AM
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Hughie must wish he could disassociate his name from this monkey. All doom and gloom in todays update. Except the bit where they are making $50m available for a new gib plant. They know where the money comes from. If it was as dire as all that they would at least defer the project for a year or two until the dust has settled. A cynic might say, todays news is how they intend to pay for the new gib plant or perhaps its all about paring back operations to bare bones ahead of some other M&A or divestment.

Bring on the break up and then Hughie might finally get his wishes fulfilled.




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What did Uncle Mel do to us?
 
plastic
post Posted: Apr 13 2020, 03:08 PM
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$3bn market cap and $1bn in the bank. Don't know what kind of liabilities they are carrying regards the SCCC fire and other projects but I don't think a ratio of one to three is low enough yet. There is more to come with this.



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What did Uncle Mel do to us?
 
plastic
post Posted: Apr 5 2020, 10:48 AM
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Covid-19 must be the straw that finally breaks this camel's back. All the layoffs which will follow will have an effect. Disgruntled staff coming back having suffered severe wage cuts while the fat cats barely take a dent will leave a scar in the workforce's psyche.

The practice of Fletchers has long been pay more than the market rate, hire well and retain staff thereby maintaining a stable workforce and a competitive advantage over others. This may well need a rejig.

Let's not even think about what is still to come from the Sky City Convention Centre with regards liability and insurance disputes. Even though they have said everything is fine on that front, the fact is, it never is. For example, what if the insurer goes bust after this world wide lockdown? Who pays then?

What of any other contracts in dispute for missed deadlines?

A break up is looking inevitable. If its true that only wallboard and cement make the money in the organization, then it should not be their job to be topping up the losers for ever and a day?

Every time I check in on this one, the image that comes to mind is that of a ships captain with a cutlass poking him in the back and a baying crew of minions cheering as he inches ever closer to the end of the plank.

That English bloke really did a number on FBU. Made a fortune and now on to his next prize.




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What did Uncle Mel do to us?
 
plastic
post Posted: Nov 8 2019, 05:35 PM
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Seldom does FBU move over 5% with an uptick in volume in a single day for no reason. Especially after a catastrophic fire with unknown consequences in an environment where building companies are feeling the property bust. Does that mean we can expect some kind of announcement? A spin out or a sale of a business unit?



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What did Uncle Mel do to us?
 
plastic
post Posted: Oct 23 2019, 06:50 AM
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FBU does a lot of self insuring for plant, capital equipment and vehicles. Let's hope that this policy didn't extend to construction projects. The alternative is too tragefarce to think about. But there must have been some way the costs got cut for the tender price to be so low.



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What did Uncle Mel do to us?
 
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?
 

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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?
 
 


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