I am absolutely in your camp on every point. My view on its low valuation is that it is one of those unloved stocks which has to prove itself over a relatively long term to bring back the buyers. It is also seen as a cyclical stock and needs the economy to be in its cycle to gain performance - IMO that is now. It has had a chequered past and there would be a few burnt ex-holders out there from poor and lacklustre performance a few years back. Its last accounts were not brilliant and it missed guidance which does not help. The reasons why it now has potential are well explained within the recent announcement IMO. They have positioned themselves well with the best up to date equipment and are now one of the leading formwork companies in Australia. The current uplift in infrastructure contracts via the State and Fed Govts places them in a very timely position now that they have integrated the recent highly compatible and value adding acquisitions. No need to say anymore as you obviously have a good grasp of the current accounting potentials. It is now a waiting game - the FY 2020 accounts will be a big factor.
ACF Price at posting:
27.5¢ Sentiment: Hold Disclosure: Held
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