Surely the more buy backs, the less liquid CAA becomes. I struggle to see the end game here, where full value is extracted, other than a PE offer or similar takeover from another 'biggie'. But who might that be, someone allied to the aluminium industry or the residential development sector.
CAA already dominates the rolled aluminium marketplace and has a damn good hold of the aluminium supplied to new residential and commercial builds via its various systems. The direct competition appears to be privately held and Tony has admitted that talks are quite open between these players and no one is budging. So, we are limited to picking up one percenters by buying out smaller independent aluminium suppliers.
I would love to get in the ear of Alan Gray who own a significant proportion of CAA and get their thoughts on how they monetize their CAA involvement. By my reckoning CAA is worth around $15 to $16 which is way north of us paddling around the $9 to $10 mark - but the general direction is upwards since the buy back announcement of 21/8/23.
CAA Price at posting:
$10.10 Sentiment: Hold Disclosure: Held
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