Ann: Change in substantial holding, page-70

I have done extensive DIY plumbing at my house and at my investment properties. I use compression and SharkBite fittings. No need to tell me it’s illegal, I know what I am doing and my work is better than any plumber. Yes, it’s not for everyone. In fact, the main reason I started DIY, was of issues caused by plumbers 7 years back. I had to take one mob to Victorian Building Commission. The guy who came out to do the repairs was not much better. One trade, I have always had issues with is plumbing. Most folks don’t see the issues I pickup, because they are not aware of best practices. By the time a leak occurs, it all too late.
SharkBite has been a true life saver and yes there are cheaper alternatives but any DIY person after only a little research on internet will be able to see that SharkBite is in its own league. Generally, I don’t mind going for a cheaper option, but with plumbing trust me you get what you pay for.
I have a cash account (don’t require an ABN) with Reece and my purchase price on SharkBite is 20-25% cheaper than SmarteX RRP sold at Bunnings, who BTW are a complete rip off. I frequent 2 Reece outlets and as a RWC shareholder every time I am there, I causally start a conversation with the sales person (all ex-plumbers), about SharkBite and Reliance. So here is what I know from them and they have no reason to lie:

• In their knowledge, there has never been a single return on SharkBite fittings due to a failure.
• Shark bite fittings are extensively being used in high rise buildings. We are talking about cashed up building companies, and they seem to trust SharkBite.
• Reece sell a ton of SharkBite fittings every day to plumbers of all ages. Plumbers talk to each other and if there were issues with SharkBite they won’t be using them and Reece won’t be stocking it.
• Auspex pipes owned by Reliance is extensively sold for water and gas and is a much cheaper alternative to copper.
• Their water control valves are market leading and used by other plumbing product manufacturers like Rheem.

Reliance is also targeting European growth and is assessing export growth opportunities into Asia and Latin America from its operations in Australia and the US.
Despite the recent volatility, I continue to remain confident in my fairly large holding in RWC.