Wednesday, November 23, 2011

Share Price Alert: Fletcher Building Ltd 4

Fletcher Building Ltd [FBU.NZX] has taken a considerable dive since its previous share price alert in mid October. At that time the share price was trading at $6.92c.

At closing of the bell today the share price finished trading at $5.92c, just under a 15% drop in share price.

This is primarily due to delays in the start date to the Christchurch rebuild but also pressure from slowing homebuilds in New Zealand, Australia and the potential for impacts from their busineses in Asia and North America as housing starts in the US have lowered demand for its laminates business there and the slowing Chinese economy looking to impact on the Asian region as a whole and the rest of the world during 2012 and beyond.

Look for sub 5 bucks early in 2012 and sub 4 bucks if the Christchurch rebuild is delayed past the previous mid 2012 start date and the above mentioned impacts from the various parts of FBUs business weigh heavy on market sentiment for the company and of course an impact on the bottomline.


P/E 13.140
EPS $0.451
NTA $2.709
Gross Div Yield 6.680%

The numbers are currently looking good with a low P/E ratio and a good yield of close to 7% gross.

As always be patient on this and you could probably park this for a few months and watch closely for your entry point.

Disc I own FBU shares in the Share Investor Portfolio

Share Price Alert Series

Fletcher Building Ltd 3
Port of Tauranga Ltd 2
Contact Energy Ltd 5
Ecoya Ltd
Contact Energy Ltd 4
The Warehouse Group Ltd 2
Contact Energy Ltd 3
Contact Energy Ltd 2
Xero Ltd 2
Pumpkin Patch Ltd 4
Pumpkin Patch Ltd 3
Hallenstein Glasson Holdings Ltd
Telecom New Zealand Ltd 4
Telecom New Zealand Ltd 3
Port of Tauranga Ltd
Freightways Ltd 3
Goodman Fielder Ltd 2
Freightways Ltd 2
Telecom New Zealand Ltd 2
Ryman Healthcare Ltd
Charlies Group Ltd
Fletcher Building Ltd 2
Contact Energy Ltd
Steel & Tube Ltd
Telecom New Zealand Ltd
New Zealand Stock Exchange Ltd
Mainfreight Ltd 2
The Warehouse Group Ltd
Pumpkin Patch Ltd 2
Hallenstein Glasson Holdings Ltd 2
Fletcher Building Ltd
Restaurant Brands Ltd
Mainfreight Ltd
Tourism Holdings
Goodman Fielder Ltd
Pumpkin Patch Ltd
Hallenstein Glasson Holdings Ltd
NZ Refining Ltd
Freightways Ltd
Xero Ltd

Fletcher Building @ Share Investor

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Share Price Alert: Fletcher Building Ltd 2
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Every Bastard Says No: The 42 Below Story

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