https://www.nbr.co.nz/hunters-corner...+Newsletter%3A
Not a subscriber but the headline says it all
Fletcher Building's financial fumble
ANALYSIS: A $300m share buyback has left loyal shareholders worse off.
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https://www.nbr.co.nz/hunters-corner...+Newsletter%3A
Not a subscriber but the headline says it all
Fletcher Building's financial fumble
ANALYSIS: A $300m share buyback has left loyal shareholders worse off.
I like the idea of buybacks but FFS do it when the company is undervalued not over valued!
Yes they (in hindsight) really buggered it up. Poor capital allocators
Maybe they can do another one now to make it right ...Surely they can spare another $ 300 mil ...which will get them 9% equity now then 6% before ..:D
Not one of Tim Hunters best pieces ..... but its full of emotion and probably what punters want to hear
Seems to have overlooked that shareholders ‘received’ $275m ……funny though is that those shareholders don’t know whether they sold into into the buyback or not …they just sold because they wanted to.
And Fletcher have achieved their EPS accretion …..though some might say that’s good for management bonuses.
Yes, FBU might be worth less (market cap) than when buyback started but that’s not because of the buyback is it.
When the buyback commenced FBU was trading at 1.7 times Book Value
Today its trading at 1.0 times Book Value
Don't think the buyback had anything to do this ..... and many unknown shareholders are $273m have cash in their pockets
Cant go wrong buying FBU at or under book value?
Our Oliver first up on One News tonite about his visit to Fletchers with Sam.
One gets the impression that Ross Taylor wasn’t that interested and possibly has lost the enthusiasm for working for them. Maybe it’s Fletchers culture to wear our senior managers after a couple years.
Taylor been there coming up for 5 years ……becoming disinterested ….share price down from when he started …..time for a new CEO reckon.
PS - share price when he started about $7.00 ..... today $4.76
Another member of the unlucky club ..... might be great CEO but ill fortune follows them
CEOs get disinterested for two reasons mainly meeting someone ...either they dont care or it doesn't matter ....dont care possible as he lost interest in job or already decided to move on ...or he didnt care about the meeting as it doesn't matter for his business which he thinks is doing fine ...
But as he has done good job so far ...he wont leave on low note ...he will leave when FBU over $ 7