amro...rumor

Trading Idea: Boral Limited (BLD) – Rumours Drive Breakout

Rumours surfaced yesterday of a potential takeover of CSR Limited (CSR), and while the company stated it had no knowledge of such a bid, BLD and CSR both moved higher on the back of the news. BLD also happened to have a nice breakout of a pennant formation and has been the underperforming building materials stock of late. Technicals and looking good anf undeamentals are also improving, making BLD a sound buying opportunity.



There has been a great deal of corporate activity and rumours floating around the building materials sector, with RIN currently under offer and rumours surfacing of a private equity bid for CSR. This all bodes well for BLD which has been the underperforming building materials stock for the past 2 months. A predicted pick up in the NSW housing market in 07 and the relative value gap between BLD’s share price gains compared to its peers (RIN, CSR, JHX, FBU, ABC) makes BLD look like an attractive buying opportunity, especially given the strong technical