The Motley Fool

Why Fletcher Building Limited is in a trading halt 

New Zealand-based construction company Fletcher Building Limited (ASX: FBU) shares and capital notes were placed in a trading halt on the Australian and New Zealand markets yesterday as the company completes the review of its Building and Interiors (B+I) projects. 

The company will update the markets with the results of the review by Monday morning, after which the trading halt will be removed. According to a statement posted on the company’s website, the B+I business is expected to produce further losses beyond those revealed in October last year, likely resulting in a violation of Fletcher’s banking covenants. 

This mirrors the company’s October 2017 trading halt following a downward revision of its profit guidance due to losses in the B+I sector. At the time, Fletcher’s share price suffered significantly, recovering from the fall just last week. 

The full extent of Fletcher’s troubles will be revealed on February 21, when the company will release its half-year result. 

Don’t Buy A SINGLE Stock Until You Read This

While conflict overseas is all media talking-heads seem to mention these days, the billionaire founder of Tesla is losing sleep over what he sees as a far bigger threat.

Elon Musk Warns: This has “vastly more risk than North Korea”

If you missed your opportunity to get in on Google, Microsoft, or Amazon in their early days, don't let it happen again. This emerging technology trend could offer a second chance for anyone who wishes they took part in these millionaire-maker stocks.

Click here to discover more!

Motley Fool contributor Tommaso Autorino has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

FREE REPORT: Five Cheap and Good Stocks to Buy now…

Our Motley Fool experts have FREE report, detailing 5 dirt cheap shares that you can buy today.

One stock is an Australian internet darling with a rock solid reputation and an exciting new business line that promises years (or even decades) of growth… while trading at an ultra-low price…

Another is a diversified conglomerate trading near a 52-week low all while offering a 2.7% fully franked yield…

Plus 3 more cheap bets that could position you to profit over the next 12 months!

See for yourself now. Simply click the link below to scoop up your FREE copy and discover all 5 shares. But you will want to hurry – this free report is available for a brief time only.