Ann: Guidance Update FY19, page-11

I note that Morgans have downgraded their target price after this announcement from $2.94 to $2.48. They also say given the cyclical exposure the market is unlikely to rerate the shares. As they were expecting 20% profit growth in FY 19, some share price weakness is hardly surprising.

You are really buying VLW for yield rather than capital growth and there remain downside risks if the housing market gets really nasty. I am a hold, but have sold my other housing related stocks. A really conservative investor would probably get out of housing stocks altogether, but the yield on VLW is very tempting particularly in a SMSF, despite the risks.