Good news fails to move Fleetwood share price

Nathan Bell

Intelligent Investor

Good news fails to move Fleetwood share price. We think the market may have overlooked the recent result from Fleetwood. The aggregated result looked lousy because the RV division is losing money, and the company's interest bill was quite steep. There is, however, a good chance the company will be debt free by next year once/if it receives a payment from the Western Australian government for building a subsidised low-cost village to house government workers. The company also signed a deal with Rio Tinto that should double the occupancy rates at the Searipple mining camp, but it won't show in the financials until the next result. Cashflow was also boosted by the lack of capital expenditure as the resources boom dies down. Despite the good news, the share price has barely reacted such is the disdain with which investors are treating anything mining related.


1 topic

Nathan Bell
Nathan Bell
Portfolio Manager
Intelligent Investor

Nathan joined value investing publication Intelligent Investor in 2006 after nine years spent as an accountant in corporate and investment banking roles in Australia and the UK. He became Research Director in 2011 and currently covers Australian...

Expertise

No areas of expertise

I would like to

Only to be used for sending genuine email enquiries to the Contributor. Livewire Markets Pty Ltd reserves its right to take any legal or other appropriate action in relation to misuse of this service.

Personal Information Collection Statement
Your personal information will be passed to the Contributor and/or its authorised service provider to assist the Contributor to contact you about your investment enquiry. They are required not to use your information for any other purpose. Our privacy policy explains how we store personal information and how you may access, correct or complain about the handling of personal information.