FWD - Fleetwood Limited

[Basilisk]

I was surprised today to see it close 59 cents higher.

I know it's been a good day today for the market but a more than 9% increase for this one comes as a bit of a shock.

 

[noirua]

I was surprised today to see it close 59 cents higher.

I know it's been a good day today for the market but a more than 9% increase for this one comes as a bit of a shock.

Nearly 4 years have passed since the last post on Fleetwood and it appears a shame as they pay a high dividend and have grown and grown. The company operates in Australasia in the caravan business and more up market running of businesses in similar sectors for small to major companies.

 

[noirua]

Nearly 4 years have passed since the last post on Fleetwood and it appears a shame as they pay a high dividend and have grown and grown. The company operates in Australasia in the caravan business and more up market running of businesses in similar sectors for small to major companies.

Link to Fleetwood Corporations' The Bull's insight into the company at: http://www.thebull.com.au/articles_detail.php?id=10845

 

[noirua]

Link to Fleetwood Corporations' The Bull's insight into the company at: http://www.thebull.com.au/articles_detail.php?id=10845

Fair enough, the big 7.5% yield is only because of the dividend stock buy-back; at least the directors take their shares as well. Down a Dollar from highs The Bulls' confident report on Fleetwood stands.

 

[Laohu]

Hey noirua, you noticed they don't seem to put the stockval "stock of the week" in The Bull anymore? Getting a bit light on content don't you think?

Cracking good fundamentals imo - wouldn't surprise me if ROE had a few of these up his sleeve

Caravans and grey nomads are good for business, and I don't suppose the already established mines are going to close tomorrow, so FWD should still get paid for their accommodation already in place, and grow a bit more too, so not doom and gloom by any means - to my mind in any case!

 

[noirua]

Yes Laohu, the mining sector is a continued key for Fleetwood and I suppose the uplift in the shareprice in the last 12 months needs to be looked at closely, and the PE Ratio. The dividend looks as if it will closely follow profits with the lower cover; has to keep on running.

 

[noirua]

Starting to takeoff again are FWD after the market setback and thoughts on the Henry proposals impacting their supply of cabins etc., to the mining industry.
Set up well with subsidiaries Camec Group, Coromal Caravans, Windsor Caravans and Flexiglass Challenge in the Caravan, spares, trailers and ute camper add-ons.

 

[noirua]

Thumping big dividends as Fleetwood Corporation power on and I'm still content to hold and add a few more here and there. Price now up to $9.95 with a dividend of 6.6%, likely to be raised further in 2010.

FWD have just purchased the vibrant BRB Modular Pty Limited for $56.5m - issued 2.5 million shares and paid $31.5m in cash.

 

[Julia]

Etrade are quoting the dividend at 4.6%, fully franked. Where does your 6.6% come from? Are you including the franking?

 

[noirua]

Etrade are quoting the dividend at 4.6%, fully franked. Where does your 6.6% come from? Are you including the franking?

Hi Julia, It comes from http://www.tradingroom.com.au/apps/qt/quote.ac?code=fwd
I never include the franking as everyone doesn't get a return of the franking.
Etrade are wrong once again - it's best to divide the dividend by the latest stock price = 6.633%

 

[noirua]

Some tipsters still rate Fleetwood as a sell, mainly because they rely on shareholders re-investing their dividends at a discount to keep up the present rate of return.
Fair enough, the FWD turnover was down but they did magnificantly well to improve profits and raise dividends.
I think, imho that is, that FWD will get back to a higher turnover as the mining sector regains confidence. Thus profits should / may, stride forward into 2011 and prove that the stock is highly under-rated.

 

[Tysonboss1]

Some tipsters still rate Fleetwood as a sell, mainly because they rely on shareholders re-investing their dividends at a discount to keep up the present rate of return.

Hi Noirua,

What do you mean by the above statment. how does the drp help them "keep up the present rate of return"

 

[robusta]

These gurs seem pretty good at the right price, nice high constant ROE, exposed to a real growth area as well

 

[noirua]

Hi Noirua,

What do you mean by the above statment. how does the drp help them "keep up the present rate of return"

Hi, Most of the profits of FWD are paid out in dividends, giving a high yield for the stock. The PE ratio is over 15. Directors and shareholders support the saving plan that allows shares to be bought at a discount. If this support dropped dramatically then FWD would have to lower the dividend.
As mentioned by The Bull under stock of the week, "the shares are not cheap". Two analysts at the Bull have rated the stock a sell.

 

[noirua]

One of my favourite good yielding stocks are Fleetwood Corporation. Profits ploughed onwards due to a tight reign on costs. The mining sector looks reasonably bouyant, well not bouyant, but improving gradually and that should advantage FWD. Now over $10.00 a share.

 

[noirua]

One of my favourite good yielding stocks are Fleetwood Corporation. Profits ploughed onwards due to a tight reign on costs. The mining sector looks reasonably bouyant, well not bouyant, but improving gradually and that should advantage FWD. Now over $10.00 a share.

Now over $11 are this caravan mobile home company that is building up 'running and building small mining villages' for workers in Australia and New Zealand. One of my favourites on the fringes of the mining recovery.

 

[noirua]

Fleetwood Corporation made increased returns on lower turnover last year. The upside could be, if they manage a forecast increase in turnover whilst maintaining margins. A yield around 6.3c and earning yield at 6.8% depends on re-investment of dividends and continued support by directors for it.
Lower interest rates could increase interest in high yield Aussie stocks from home and abroad.

 

[Ian]

Noirua,
Now over $12 and still looking strong.
Do you have a view of how far they can go?.
I have held for a very long time and don't intend to sell but I would be very interested in your view of how far this run can go.
cheers
Ian

 

[noirua]

Noirua,
Now over $12 and still looking strong.
Do you have a view of how far they can go?.
I have held for a very long time and don't intend to sell but I would be very interested in your view of how far this run can go.
cheers
Ian

A bit late replying Ian, but I tend to see a tipsters, The Bull at share of the week a while back, original target of $13.50 reached in the short term. The half year result will be important to pour over.

One of the important profits will be the near two thousand unit residency at Karratha Resource for Woodside. Boom town area is this with house prices and units sky high: http://www.localpropertyindex.com/Search/ForSale/All+Properties/Karratha
Have you got $12 million for some of these, good grief.

My view is that FWD will profit well from this mining village which I last read is close to full capacity.
If the rest of Fleetwood carry on in the same vein then I'm expecting a bumper year.

Any downside, not much really; a few director changes and most of the profits are paid in dividends relying on the share purchase scheme that runs at a 2.5% discount.

At $13 FWD is on a 5.3% yield and may be one funds will still accumalate. Good dividend that increases every year - so far anyway.

 

[fanger]

I picked up FWD today for $11.20 and no sooner as I bought it the market crashes 140 points. Only down a couple of percent but couldn't have picked a worst time to buy it.