Hmmm. I see a “please explain” notice in MPG’s future. Up 33% today on no news, unless I’ve missed something.
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Hmmm. I see a “please explain” notice in MPG’s future. Up 33% today on no news, unless I’ve missed something.
low volume....
Announcement that announcement will be soon was good news ....this time didn't come with the rider that. '..we expect profit to be down'
Back up to my buy in price! Who said value investing is dead (might have been balance)?
Should be a dead boring update which provides some certainty and we can get out of the 20 something cents per share territory.
Debt reduction hopefully on schedule ($15m was the target from memory) and moderately positive outlook with a huge list of caveats....
Pretty solid result in the circumstances
Outlook not that good in construction sector but they’ll keep busy
Metro never be this cheap to buy again if anybody wants to acquire them
Management might even get together and take them over?
http://nzx-prod-s7fsd7f98s.s3-websit...919/324770.pdf
Probably the most sobering sector assessment I have seen so far, but hey - they might well be right. What does surprise me is that they don't seem to expect any structural changes to the building sector. I am wondering what the increase of tiny houses, prefab houses and similar might do to their business? As well, what its the story with this new big competitor who must be coming online soon?Quote:
While the implications of the COVID-19 pandemic on construction activity in New Zealand and Australia are uncertain,
Metroglass expects a significant decline in economic activity for at least the next 12 to 24 months. The base case
estimate for 9 month lagged NZ residential consents is for a marginal fall in FY21 and a c. 20% decline in FY22, before
a c. 5% recovery in FY23. A 20% decline in detached residential housing starts in our key Australian markets in FY21
(non-lagged) is also expected, followed by a 9% recovery in FY22.
I like how they say that dividends are cancelled but it's now because of the bank covenants, and therefore out of the company's control.
Otherwise nothing too unexpected but the future revenue projections are pretty startling.
Australia had to come right sooner or later. Dividends dont worry me, profits are what count.
Debt reduction equivalent to 8 cents per share. Under priced at 22 cents in my opinion.