RWC this morning dropped to A$3.99. With all the worry about higher USA inflation, it may drop further despite the obvious ability of the company to initiate price rises, something 'Mr Market' appears to ignore.
However Directors haven't issued a qualification to their recent fairly optimistic trading update.
Every plumber I know (four) claims business in Melbourne is busy or quite good. They're not whinging about a lack of work. A couple said they'd used RWC products when I showed them the range (they know SharkBite, but 'Reliance Worldwide' is a name they never hear, understandably).
It's a simplification as I am not in the building and construction industry, but the price elasticity of demand is arguably inelastic for many RWC products as they are essential to complete jobs, big and small.
DYOR and this is not advice, but I'm not a seller even though as one other 'HC' poster remarked elsewhere, a previous drop was 'painful'.
RWC Price at posting:
$4.02 Sentiment: Hold Disclosure: Held
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