FBU Fletcher Building Monthly Near buying levels...

9月4日

FBU Fletcher building near buying levels

Currently getting near demand level, currently has forward dividend of 11% but earnings have shrunk dramatically to loss making and likely going to restructure business or resize operations

No action as yet as there is no clear signal right now to buy, but it is definitely on my watchlist and hoping it drops in the next 2-3 months so I can buy lower at multiple support levels and lift my dividend % when it turns around again
The gap between the preferred $2.70 and $1.80 is quite wide so I might dip into a position at $2.70 and then load up the rest at $1.80 if it gets there

Fletchers is a pretty iconic NZ business but does have a pretty high debt level of 106% debt to equity so there needs to be a shift to reduce this if this involves developments that are funded by debt they need to be converted back into equity...

Likely needs some management and operational changes as current formula of negative profit and high debt to equity is not working... nor sustainable...