Fletcher Building Limited (FBU.NZX)

25 June 2018

Technical Summary: The average share price of FBU over the last 5 years on a weekly close basis is $8.06 per share. The stock closing last week at $6.82 suggesting a severe underperformance for the company. Certainly anyone familiar with the fundamental performance of the company will be aware of this. On the one year chart there is no discernible trend for investors or traders to latch onto. The chart itself is punctuated by wild swings in the stock price and big gaps (usually to the downside). The only meaningful play at the moment will be for those that suspect a mean reversion to the average of $8.06 or above. While there is nothing wrong with this decision it will have to be made on fundamental as opposed to technical reasons.

The average 5 year price of $8.06, the current price of $6.82, what next?

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