Fletcher is a classic PE takeover target at these levels - has some great businesses and a couple of average ones - but has been poorly run for some years now and accumulated considerable debt without associated earnings growth to justify it.
It is a sitting duck at these levels - lovely scale play for PE, with NZ housing and number of non-core businesses to flog off to reduce debt, and retain the crown jewel building materials businesses.
Sum of the parts well above current market cap. Big discount being applied for Inpex uncertainty.
I am happily accumulating at these levels, has been an awful ride for LT shareholders - but if execs can't tidy house quick smart then PE will do it for them.
FBU Price at posting:
$2.73 Sentiment: Buy Disclosure: Held
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