TWD 0.40% $2.47 tamawood limited

I am sure they will survive too. As indicated on their website...

  1. 1,908 Posts.
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    I am sure they will survive too. As indicated on their website they promise fixed price contracts which at the moment is the reason for the downfall of many other builders throughout Aust. Although fixed pricing of contracts will for the short term impact their bottom line it should be noted that even before the current macro events TWD had developed their business model around costing and inventory control around ensuring they were able to sustain a fixed price model. Their IT system Senterprysis was designed around maintaining this factor as a model. I do note that they are now advertising the use of AI in their modelling to further derisk problems associated with pricing. They do have small growth aspect to their profile as @-5hadow- indicated - ie the offer of franchising which enables other builders to use their proprietary software, home plans and pricing to run their business. Not a big deal but they have managed to engage builders in Vic and NSW to join.

    From memory the main problems facing them are labour and material shortages combined with extreme weather events - this delays building completions - stretches revenue into longer timeframes and consequently delays profit but does not eliminate it or reduce it over the longer term.
    I might be painting too much of a rosy picture so please do your own research and ascertain exactly how they operate. If you can look at the Senterprysis software they use and check its comprehensive costing and disciplined inventory controls because therein lies the secret as to why they will survive and why I back what you are saying Tapdancer.
 
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