FWD - Fleetwood Limited

[peter2]

I'd be concerned by the volume and the scheduled news as a short term trader. There are plenty of better opportunities for us than this.
Medium term using the weekly charts, I'd be less concerned as my iSL would be further away to allow for some price volatility. If the report is good and the buyers stepped up. I'd be inclined to add to my initial position and raise the iSL a little and hold for much longer.

 

[greggles]

Fleetwood Corporation has announced that it is selling the Coromal and Windsor Caravan brands to Apollo Tourism & Leisure Limited (ATL). Fleetwood will sell goodwill in the business to Apollo for $1 million, and at the end of a transition period, Apollo will purchase Fleetwood's remaining raw material and finished goods stock.

Fleetwood had previously announced that earnings in caravan manufacturing in the second half of FY18 were expected to be an EBIT loss of between $7 million to $8 million.

The market was happy to see Fleetwood unload its loss making caravan manufacturing operations and focus on its parts and accessories, modular accommodation and village operations markets.

The FWD share price has seen a lift today as a result of the sale, up 21.5c to $2.16.

 

[So_Cynical]

Fleetwood not making caravans is like coke not making coke..

 

[noirua]

FWD was once a high dividend payer and a portfolio must have with links to supplying accommodation for miners during the boom years. Fell apart as they built more accommodation just before the big mining recession period and then buying caravans became quite a Luke warm sector to be in.

Once $14 and then flirted with the $1.50 level in a big fall from grace. Moving from mid-cap to micro-cap and stumbling along. Now they are starting again from a low base and are ones to keep an eye on after a successful rights issue.

 

[Country Lad]

FWD broke out at $2.00 and is going on with it today. Maybe it has manged to crawl its way off the bottom and surprise us all.

 

[sptrawler]

FWD broke out at $2.00 and is going on with it today. Maybe it has manged to crawl its way off the bottom and surprise us all.

I wonder where they are getting their growth from? I Will have to do some reading up.

 

[Country Lad]

I wonder where they are getting their growth from? I Will have to do some reading up.

These announcements most likely helped a bit

 

[sptrawler]

These announcements most likely helped a bit

That's interesting CL, Pindan were recently bought out by a Singaporean company, from memory.
There is a big push in W.A to go away from FIFO.

 

[RobL]

Fleetwood Corporation Limited is listed on the Australian Securities Exchange using the ticker FWD. The company is based in East Perth, Western Australia and is involved in modular accommodation, parts and services and, village operations.
The stock price has broken north through a trading range in the last couple of trading days closing Monday, October 28 at AUD 2.270. The next resistance level is AUD2.317 and then AUD2.363. The stock hit an all-time high of AUD14.250 in February 2011 and an all-time low of AUD1.000 in March 2016. Fundamental and technical analysis can be found on Yahoo Finance using the symbol FWD.AX .
Disclaimer:
This information is for general information only and should not be used solely to base trading or investment decisions. Please do your own research. The company’s website is here https://www.fleetwoodcorporation.com.au .
Here https://decentralisedwealth.com/QualityTradeIdeas.html you can find some other interesting US and Australian stocks to look at.

 

[noirua]

FWD Website: https://www.fleetwoodcorporation.com.au/

 

[noirua]

Half Year Results Presentation: https://stocknessmonster.com/announcements/fwd.asx-6A969201/

Half Year Results to December 31 2019: https://stocknessmonster.com/announcements/fwd.asx-6A969200/

 

[noirua]

Back to paying dividends again after a long drought - 12c a share. Noted, now in the distant past, for being one of the highest dividend payers on the ASX. Company was in trouble with its Caravan and mining accommodation divisions. Was once at $14 and now under $2, showing the extent of the downdraft in the mining decline.
Presentation: https://www.asx.com.au/asxpdf/20200826/pdf/44lwy7tgprbfts.pdf
https://www.asx.com.au/asx/share-price-research/company/FWD

 

[noirua]

Is There An Opportunity With Fleetwood Corporation Limited's (ASX:FWD) 30% Undervaluation? - August 28 2020

Is There An Opportunity With Fleetwood Corporation Limited's (ASX:FWD) 30% Undervaluation?

Does the August share price for Fleetwood Corporation Limited (ASX:FWD) reflect what it's really worth? Today, we will...

money.yahoo.com

Annual Report 2020: https://s31925.pcdn.co/wp-content/uploads/2020/10/Fleetwood-Annual-Report-2020_FINAL.pdf

Maybe just maybe FWD are returning to old time profitability that saw the share peak at around $14 - now under $2.

 

[noirua]

STRATEGIC PLAN UPDATE

FWD (ASX) Ann: Strategic Plan Update

Strategic Plan Update

hotcopper.com.au

 

[System]

On November 26th, 2020, Fleetwood Corporation Limited changed its name to Fleetwood Limited.

 

[peter2]

The change of name deserves a chart. Problem is that the chart of FWD looks "ornery". Hard to believe that this was once a $13.50 stock. Today's BO>2.00 is comforting but only a start. I'll be happier once price gets above 2.50. Someone will be making out like a bandit when it does.

 

[noirua]

It looks as if the new strategic plan has a good chance of working and helped by the mining boom. A very gradual uphill struggle that could see us back to $3.00 in the short term.

 

[The Triangle]

It looks as if the new strategic plan has a good chance of working and helped by the mining boom. A very gradual uphill struggle that could see us back to $3.00 in the short term.

They are effectively debt free, have manufacturing capacity and print cash like an ATM. Dumping the caravans and raising capital 2 years ago was a fantastic move. Even after pretty much doubling the SP, the EV/EBITDA is probably going to be below 7 once we see 1/2 yearly results. I think $3 is a foregone conclusion - the plan is working. $4-5 would not surprise me if they can pull off a few big contract wins - maybe some government jobs.

My main concern (which really is not a concern) is the high dividend payout % of 100% - surely they can invest in something to hedge against a downturn? There are a tonne of resource projects around the traps right now, and FWD container offices/camps must be going very well - but it''s very much a boom/bust cycle.

 

[noirua]

They are effectively debt free, have manufacturing capacity and print cash like an ATM. Dumping the caravans and raising capital 2 years ago was a fantastic move. Even after pretty much doubling the SP, the EV/EBITDA is probably going to be below 7 once we see 1/2 yearly results. I think $3 is a foregone conclusion - the plan is working. $4-5 would not surprise me if they can pull off a few big contract wins - maybe some government jobs.

My main concern (which really is not a concern) is the high dividend payout % of 100% - surely they can invest in something to hedge against a downturn? There are a tonne of resource projects around the traps right now, and FWD container offices/camps must be going very well - but it''s very much a boom/bust cycle.

Hopefully, we will see $14 a share once more though that was driven by high dividend payouts that probably attracted a lot of people wanting to get tax back. As soon as mining prospects tumbled the share price went down with it despite protestations that the caravan side would boom - unfortunately it eventually faded as well.

 

[Country Lad]

.........................despite protestations that the caravan side would boom - unfortunately it eventually faded as well.

FWD sold its caravan operation to Apollo Tourism & Leisure Ltd (ATL) in 2018. They probably wish they still owned it now. Most caravan manufacturers are quoting 6 months or more delivery time. The market is booming since the start of Covid. It is surprising that ATL hasn't risen with the demand out there.