Peters promotes wool – and Cavalier shares dive
NZ First leader's wool push fails to pep up carpet maker, but NZ Frist leader could still have the last laugh.
Winston Peters' push for the government to adopt woollen carpet has failed to pep up Cavalier.
In fact, the carpet-maker and wool processor's shares fell 12.2% (a day on which it filed no announcements with the NZX, or generated any other news).
High debt and low earnings have seen Cavalier's shares under pressure for an extended period (they are now down 60.2% for the year).
Can Mr Peters' wool-boosting campaign help deliver a morale-boosting rally? Not if yesterday's share performance is any indication.
Investors don't seem to have a very high level of confidence the NZ First leader can get his wool plan through.
Mr Peters' call for synthetic carpets in government offices and more than 60,000 Housing NZ properties to be replaced with woollen product drew guffaws from the chattering classes, and was called an "unrealistic conversation" by Prime Minister Bill English.
But it could play well in the provinces, where the effects are being felt of the lowest wool prices since the global financial crisis.
Cavalier shares were flat in early Thursday trading.
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Peters promotes wool – and Cavalier shares dive
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