Good news fails to move Fleetwood share price
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.
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...
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