Bremworth BRW

[Joshuatree]

I picked a few up recently although it's tough in illiquid stocks like this, so just a small test pot as price has been moving away from me.

It's nice to finally see CAV/BRW with a better looking balance sheet, something they should have sorted out over 10 years earlier... now that they're back on solid footing, just got to see if their strategy can play out. CAV used to be a solid earner and pay good divs before they over-stretched and got caught out by pricing and marketing moves around synthetics. It's hard to know where BRW will land this year though, because they were in the "exiting synthetics" phase last year and managed to bring in cash by reducing inventory. Not too many clues in the agm presentations either. Interested in any views.

Thanks, lots to like and the shift to ESG type companies is only going to accelerate.Bought some.

[tim23]

I picked a few up recently although it's tough in illiquid stocks like this, so just a small test pot as price has been moving away from me.

It's nice to finally see CAV/BRW with a better looking balance sheet, something they should have sorted out over 10 years earlier... now that they're back on solid footing, just got to see if their strategy can play out. CAV used to be a solid earner and pay good divs before they over-stretched and got caught out by pricing and marketing moves around synthetics. It's hard to know where BRW will land this year though, because they were in the "exiting synthetics" phase last year and managed to bring in cash by reducing inventory. Not too many clues in the agm presentations either. Interested in any views.

I bought recently, I recall the days when they paid 3 dividends each year. Like the new direction and CEO credentials.

[Scrunch]

I bought recently, I recall the days when they paid 3 dividends each year. Like the new direction and CEO credentials.

One of the interesting features of CAV/BRW is that they managed to sort out their balance sheet without a capital raise. This means that there is no dilution effect existing either from issuing options/rights/performance shares to management or through capital raising. Back in June 2011 CAV had 68,263,857 shares on issue. Jumping forward 10 years to June 2021, they have 69,179,098 shares on issue.

[haewai]

Highish risk I think. Unknowns about how successful the devotion to natural fibres will be, immediately and growth. Balance sheet is flush with cash from strategic disposals including land and old synthetic stock. New CEO has valuable brand experience and AGM presentation noted production back to pre-Covid levels. I recall but can't re-find a note that performance in 2022 is expected to be steady as it will take time for strategic transition and marketing to take hold.

[percy]

With retail,new houses ,new car sales and home improvements, booming it the past year BRW should have done well.
If not, I doubt they ever will.

[bull....]

this was a good buy in the 30's but the value gone now until they can prove there operating model and with the property bull facing headwinds it will be a big ask in my opinion

[bull....]

this was a good buy in the 30's but the value gone now until they can prove there operating model and with the property bull facing headwinds it will be a big ask in my opinion

timely exit indeed. share price decline not surprising macro fundamentals now negative eg building slowdown and the fact each time they spend money on marketing with out a corresponding increase in sales means the shares are valued less for the future

[haewai]

Sliding share price is sad
But glad to hear of these sort of deals: https://www.nzherald.co.nz/hawkes-ba...7EXLUKZ5G2XQU/

" ... its carpet was "going out of the door" as fast as they could make it."

[Brain]

Sliding share price is sad
But glad to hear of these sort of deals: https://www.nzherald.co.nz/hawkes-ba...7EXLUKZ5G2XQU/

" ... its carpet was "going out of the door" as fast as they could make it."

Thanks Haewai - That is good news. Maybe Cavalier can get back to the Halcyon days of 30c dividends and $3 plus sp that I remember so well. Cavalier was a great investment for me in those days and my biggest shareholding at the time.

A manufacturing plant running at full capacity is a very very good sign.

[winner69]

See Bremworth got a $798,000 hand out from the government to help them make Napier plant more energy efficient -- use heat pumps instead of gas to heat up the water

Corporate welfare in action

That's good eh