Ann: Guidance Update FY19, page-15

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Novice2012

591 Posts.

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21/08/18

04:47

Post #: 35050565
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Originally posted by WR888 ↑

Re-igniting this thread again,... in the recent FY18 report released on August 15, many metrics were good, outlook was good, dpu payouts for next year will be maintained. The only 'thorn among the roses' in the reports was the debt-related section. Look at the 'Balance Sheet and Capital Management' Slide.

Due to the transition over to a strong delivery phase, the amount of debt taken rose sharply in FY18 compared to FY17 - I would call this as healthy debt, because a large portion of the amount loaned is used for land acquisition. Land acquisition would finally turn into settlements later, which then translates into revenue for the company.

Outlook for FY19 and beyond, as explained in the document in this thread, is on-track for future growth....

So all is good - BUT THE SHARE PRICE IS STARTING TO DIVE AGAIN TODAY, touching a low of 2.24. Did we miss something ?

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I would associate the current price action with general real estate market sentiment. The market is probably expecting more out of cycle rate hikes, steady decline in land and home prices, increase in mortagage defaults, real estate co's decline is sales etc.

But I believe VLW has been hammered a bit too much and seems to be good value at these prices. I have been watching from the sidelines and will look to buy in soon. This should bounce off these levels else this could go down further.

Last edited by Novice2012: 21/08/18

VLW Price at posting: $2.24 Sentiment: Buy Disclosure: Not Held
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0 Great analysis

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