The Fleetwood result appears to have been overlooked by the market
The Fleetwood result appears to have been overlooked by the market. The aggregated result looked lousy because the RV division is losing money. The company's interest bill was also steep, but there's 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, yet 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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