"More than 2.2 million owner-occupied homes will qualify for free ceiling insulation under the Prime Minister's plan, an element of a multi-pronged economic stimulus package expected to be announced tomorrow.
The Government will also double, from $500 to $1,000, ceiling insulation subsidies for owners of 500,000 rental properties."
I have my doubts about the impact of the increase in the rental subsidy - given that ladndlords are not paying the electricity bills, they are unlikely to be excited about an subsidized insulation.
But, for the 2.2m people who can get FREE insulation. It will cause an absolute explosion of sales in the sector. Not a discount offer, FREE.
I also understand, after having phoned a local Cool or Cosy office this morning, that margins in their insulation business are far higher than other areas of the business, such as air conditioning.
So the impact of this change will be PROFOUND on a small company like COS, even if they only get a small fraction of a massively increase market.
COS Price at posting:
7.0¢ Sentiment: ST Buy Disclosure: Held
A personalised tool to help users track selected stocks. Delivering real-time notifications on price updates, announcements, and performance stats on each to help make informed investment decisions.
(20min delay)